The Logistics Group has constructed a port facility in South Africa to enhance the export of a vital battery metal from one of the world’s lengthiest freight trains.
This development addresses the country’s rail capacity challenges. The state-owned port and rail operator, Transnet SOC Ltd., has seen declining volumes transported across South Africa due to corruption, mismanagement, and locomotive shortages.
The Logistics Group, under the ownership of Old Mutual Ltd.’s African Infrastructure Investment Managers, recognized an opportunity to improve efficiency.
They built the Saldanha Dry Bulk Terminal, a storage facility capable of accommodating 100 tons per wagon, compared to the existing operations in the area processing only 63 tons.
This project, valued at 200 million rand ($11 million), includes a warehouse for train reception.
Manganese, the fourth most-used metal worldwide by tonnage, is a crucial component in steelmaking and lithium-ion batteries. South Africa possesses approximately 80% of the world’s estimated manganese reserves.
Despite a decline in Transnet’s coal deliveries to record lows, manganese volumes slightly increased to 14.6 million tons in the 2023 fiscal year.
Transnet is seeking government support to address its financial challenges, implement structural reforms, and attract private investment.
The Logistics Group’s proposal for the Saldanha facility has been well-received by Transnet. Once operational, it is expected to reduce the number of trains required on the line, contributing to more efficient manganese transportation.
