Transnet Freight Rail Working to Expand Manganese Export Capacity
Key Highlights :
Transnet Freight Rail (TFR) is working to expand its railing capacity for manganese exports, in a move that could bring an extra R4.4 billion in foreign exchange earnings for the South African economy. The state-owned logistics company on Thursday announced a potential 1.5 million tonnes of export capacity will be added through the extension of the Mamathwane crossing loop in the Northern Cape, which will capacitate export efficiency in both the Cape and Ore Corridors.
The extension of the current loop is scheduled for completion at the end of July 2023 and is expected to benefit exporters, while the added volumes will also provide additional revenue for Transnet. The bottleneck in the rail network is the line between Hotazel and Sishen, which is currently maxed out in terms of the number of slots that TFR can accommodate. The loop extension will ensure maximum slot usage on the line between Sishen and Hotazel, enabling the movement of additional trains in this constrained section.
As things stand, TFR runs 104 wagon trains to PE [Gqeberha] and 125 wagon trains to Saldanha. The loop extension will result in an increase of an estimated four trains per week. This is a significant step towards creating additional capacity while a longer term expansion project will increase manganese volumes from 16 million tonnes to 22 million tonnes by 2027/28.
In order to explore areas of collaboration in either improving efficiencies or creating new capacities, TFR has been engaging with industry players – both big and small – on a regular basis. The logistics company is also embarking on several other capacity creation projects in partnership with key industry players.
The loop extension is expected to bring in additional revenue for Transnet and benefit exporters. It is a step in the right direction for creating additional capacity, while also providing a boost to the South African economy.
