South Africa Seeks Private Investment for $2.7 Billion Manganese Export Corridor
South Africa’s state-owned freight and logistics company, Transnet, is seeking private-sector partners to help develop and operate a major manganese export corridor estimated to cost up to R44 billion (US$2.7 billion).
The proposed Ngqura manganese export corridor will link manganese mines in the Northern Cape with the Port of Ngqura in the Eastern Cape.
Transnet has issued a request for qualifications as it seeks private investment and expertise to finance, construct, operate and modernise the corridor and its supporting rail infrastructure.
The project is intended to consolidate manganese exports at the Port of Ngqura, replacing the current fragmented logistics system, which relies on multiple handling points and significant road transportation.
Transnet said the existing arrangement has contributed to higher logistics costs, road congestion and environmental and social pressures around Nelson Mandela Bay.
The new corridor is expected to initially handle approximately 12 million tonnes of manganese annually, with capacity potentially increasing to 16 million tonnes depending on market demand and further investment.
Under the proposed public-private partnership, the selected private-sector partner would be responsible for helping to finance, build and operate the export infrastructure while supporting the rehabilitation of the rail network connecting mining operations to the port.
Manganese is a key mineral for South Africa’s mining industry and is primarily used in steel production, while its role in battery manufacturing has also increased.
South Africa holds about 80% of known global manganese resources and is one of the world’s leading producers and exporters of the mineral, making efficient rail and port infrastructure important to maintaining export capacity.
The proposed investment forms part of Transnet’s broader strategy to attract private capital and technical expertise into the country’s freight and logistics infrastructure.
The state-owned company has been pursuing private-sector participation in several major rail and port projects as it works to improve the performance of South Africa’s logistics network.
The Ngqura manganese corridor is expected to provide additional export capacity while improving the movement of manganese from the Northern Cape to international markets.
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