Fuel Stations Development Process in South Africa

1 Fuel stations development process: Turnkey Process

An illustration of a general filling station process from initial developments up to operations of the facility is seen below. Elements of this process are further discussed in succeeding sections.

1.1 Development

1.1.1 Environmental Impact Assessment

Approved EIA including all necessary specialist studies are required for license applications and funding purposes of filling stations.

Generally, for petroleum storage between 80 m³ and 500 m³, a Basic Assessment process will be required for environmental authorization in terms of Activity 14 of Listing Notice 1 (GN No. 984 of the National Environmental Management Act (Act 107 of 1998). Typically, fuel station storage volumes range between 60 m³ and 120 m³ underground storage, depending on the size of the facility, available area and grades of products to be stored.

Sometimes a waste management license application under the National Environmental Management Waste Act (NEM:WA) (Act 28 of 2008) are relevant, depending on the daily throughput capacity for treatment of effluent, wastewater or sewage.

A General Authorization (GA) or a full Water Use License Application (WULA) might also be required depending on the type of water source and amount of water to be used.

General Specialist Studies required as part of the EIA process include:

• Traffic Impact Assessment
• Socio-Economic Impact Assessment
• Storm Water Management Plan
• Waste Management Plan
• Contamination Risk Assessment
• Geotechnical Study
• Phase 1 Heritage Screening

1.1.2 Town Planning

Town planning activities typically include:

• Consolidation and re-zoning of the property (if required – depending on the type of facility and current zoning);
• Civil Service Reports for bulk contributions (i.e. roads, stormwater, water supply and sanitation);
• Site development plans.

A land-use zoning certificate issued by a competent authority, authorising retailing from the site is required for the licensing applications. The Title Deed of a property will be required to scope the required town planning activities.

1.1.3 Legal Requirements

In terms of the legal requirements for developing filling stations, a Letter of Intent to supply fuel and/or signed lease agreement from an oil company for at least 10 years is generally a requirement for funders prior to reaching financial close. This depends on the business case and project structuring proposed by the client and terms of the envisioned funders for the sites.

EPCM has an in-house legal department capable of assisting with required contractual agreements (i.e. develop/review of lease agreements, develop/review of supply agreements, facilitation during negotiations, etc.) should there be any opportunity for this requirement.

1.1.4 Licensing

Site-, retail- and/or construction licensing is required to be approved prior to breaking ground with any construction activities. Type of licensing depends on operations to be installed (wholesale, retail, etc.).

EPCM assists our clients with the following tasks:

• License applications on behalf of the client at the relevant regulatory authority;
• Assistance with preparing all documentation required for licence applications;
• Obtaining approval from the government for required licensing of desired facility operations.

1.1.5 Finance

For commercial property finance, various finance options are available. Considering debt finance, the following processes are normally involved with raising finance:

• Preparation of information memorandum for investor reference purposes;
• Introduction of information to relevant investors identified based on project nature, project returns and type of project funding required;
• Discussions between project sponsors and prospective financiers regarding the project.

Assistance with the communication of the feasibility/concept study, financial modelling and information memorandum to potential financiers can be provided to clients by our financial team.

1.2 Design

1.2.1 Codes and Standards

1.2.2 Feasibility / Concept Studies

As a first step in developing a filling station, a business case needs to be developed in order to establish whether the project will economically be viable. To set the basis for the project, a feasibility/concept study needs to be conducted in order to establish whether there is a market to serve in the surrounding areas, identify the infrastructure requirements to meet the market demand, determine the project cost estimates and conduct a financial analysis to determine whether the facility will be able to deliver fuel on a cost-competitive basis. Most important will be to determine if the desired return on investments could be reached.

This study typically forms the basis for succeeding phases of the project development phase and is a key requirement in illustrating the business plan for funding purposes. Key deliverables generally included in the feasibility/concept study:

• Market assessment;
• Infrastructure assessment;
• Capital and operating cost estimates;
• Project implementation schedule;
• Results from financial modelling and investment structuring.

1.2.3 Architectural Designs

The general approach in executing Architectural Designs for filling stations is described below. A complete visual walk-through of the entire space can be provided to clients in concluding the Architectural Designs. Below tasks describe the general methodology for the architectural designs of the filling station.

Design: briefing & structure phase

This phase lays down the foundation block for the entire project, most of the major decisions are made in this phase. Typical tasks to be performed in this phase include:

• Concept direction board (concept pictures with details of building & interiors) – using client’s concepts & ideas in a final ‘look & feel’ board;
• Forecourt and canopy area concept – mood concept pictures;
• Restrooms concept – mood concept pictures;
• Shop/kiosk internal concept – mood pictures & interesting details;
• Restaurant (if need be) concept – mood and interesting details;
• Finishes sample board and specification for Quantity Surveyor to quantify;
• Space planning using the company organogram to define areas & departments;
• Furniture (interior) and pumping bay layout in accordance with the defined space planning;

Specification phase: all hard finishes

• All celling layouts with a detailed lighting plan;
• Complete wall finishes schedule of the entire building;
• Complete floor finishes schedule of the entire building and outside areas;
• Complete tiling layout in all tiled areas: kitchen/restaurant, restrooms etc;
• Complete Sanitary schedule;
• Lighting specification schedule;
• Electrical specification schedule;
• Signage specification schedule;
• Working drawings of all shop fitted items and other built-in pieces, ex. vanities, cupboards and other cabinetry;
• Details & specifications of feature areas – ground floor entrance, reception, open-plan areas, canteen and restrooms;
• 3D renderings of key areas for presentation.

Interior design: All details on soft furnishing and general features

• All restaurant/kiosk furniture: counter, ergonomically correct seating and shop layout;
• All soft furnishings: Occasional seating, rugs, artwork, signage, accessories;
• Detailed quotation break-down of every area.

1.2.4 Engineering Designs

As part of the engineering designs, the following deliverables are generally included:

• Process Schematic for hydrocarbon process
• Process Flow Diagrams (PFDs)
• Piping & Instrumentation Diagrams (P&IDs)
• The overall layout-, site layout- and location drawings;
• Material Safety Datasheets (MSDs);
• Hazardous area classification drawings;
• Major equipment data sheets and specifications;
• Pipe routing layouts;
• Single line diagrams;
• Earthing drawings;
• Cathodic protection system drawings;
• Power consumption list;
• Electrical and instrumentation datasheets;
• Cable route diagrams;
• Fire detection and -protection designs;
• 3D Model (underground and aboveground); and
• Detailed Civil Drawings.

What separates our proposed design approach is our abilities to apply innovative smart 4D build information modelling (BIM) that ensure efficient construction, progress tracking and improved communication between the office and construction teams. The team has strategically decided to apply this technology as an additional service offering for clients to improve building efficiencies, shorten construction programs and serve as an effective project management tool. How 4D is applied during our design executions:

• The site is intellectually modelled by creating a 3D model in Autodesk Plant 3D based on the engineering designs;
• The 3D model is then integrated into Navisworks;
• The approved detailed construction schedule completed in MS Project is then imported into the same Navisworks model;
• Using Navisworks, the schedule then intelligently connects with each 3D component of the filling station;
• A 4D simulation video is produced based on the schedule integrated with the 3D plant model.

1.3 Procurement, Construction & Commissioning

Procurement can only start once funding is in place. Construction can only start once the EIA, building plans and licensing applications have been approved.

1.3.1 4D BIM Modelling

Applying 4D to the construction phase is beneficial to our clients and EPCM. The actual versus planned construction progress are tracked using a 4D simulation video. The 4D simulation video is generally used during toolbox talks on site during construction. This allows improved communication between the office-based engineering- and onsite construction teams. The office-based team is able to follow the onsite progress in reality based on the internet.

Another advantage of applying 4D modelling is to identify any construction issues early on during the project to plan accordingly and prevent schedule delays. This also allows the draughting and engineering teams to easier make design changes and update designs during construction when required.

1.3.2 Construction Works

General construction works for a filling station along with its activities are described below.

Civil & Earthworks

• Preliminary work consists of site establishment and site clearance;
• Clear and grub of site, excavate and compact where necessary;
• Backfill to be procured and filled where needed;
• Extension to the existing building to be erected;
• Parking and dispensing areas will be prepared and constructed (brick paving for parking and concrete slabs for dispensing area);
• Construction of new pylon sign (including all signage);
• Canopy remedial work; and
• Landscaping.
• All necessary excavation and compaction of new entrances and exits to the retail site;
• All applicable backfilling where needed; and
• Brick surfacing, shoulder slopes and curbing (details to be confirmed).

Electrical Works

• All new cabling and DB board;
• Building lighting and power connections;
• Lightning and earthing protection;
• Perimeter lighting; and
• All lighting within the building and dispensing area.

Mechanical Works

• Supply and Installation of all new piping (filler lines, vent lines, delivery lines);
• Supply and Installation of 3 new, 3 product 6 hose dispensers;
• Supply and Installation of STP’s;
• Supply and Installation of all applicable valves and fittings; and
• Supply and Installation of Automatic Tank Gauging.

Forecourt & Kiosk Building

• External Shop & Forecourt Signage;
• Kiosk Graphics;
• Internal Shop Signage;
• Ground Water Monitoring Wells;
• Internal Equipment and Furniture;
• Shop IT Systems & POS;
• HVAC and Refrigeration;
• Shopfitting & shop equipment;
• BRG glasses & doors; and
• Site Generator.

Fire Protection System

• Firefighting equipment to be included in accordance with client requirements, as well as best practice engineering codes and standards.

EPCM provide procurement, construction and commissioning of the filling stations as this is our core business and main objective for a turnkey filling station project. A detailed procurement, construction and commissioning methodology are provided to clients prior to construction.

1.4 Training of Operators

EPCM provide training courses for filling station operators to various major oil companies. A detailed training program is provided to clients.

1.5 Maintenance

EPCM can provide filling station maintenance services. Tank cleaning, tank inspections, CP system inspections, building maintenance, canopy maintenance, signage upgrades, etc. can be provided by EPCM. A proposal can be provided once more detail regarding the filling stations are available.

2Fuel stations development process: Timelines

Indicative timelines are provided below for the EPC components of a filling station. A detailed project schedule is provided to clients upon project commencement.

3Fuel stations development process: Quality Management & HSE Compliance

EPCM is ISO 9001:2015 and 14001:2015 accredited and also operates under 45001 Operational Health and Safety Management System.

Engineering, procurement and construction are carried out in accordance with EPCM’s quality management plan, the client’s specifications and international best practice. The QMP & HSE plan that are complied with is available upon request.