Transnet announced it will appoint a private sector partner by the end of 2025 to help build a proposed 16 million ton-per-year manganese export terminal at Ngqura port in the Eastern Cape.
In an update on its reform plans, the state-owned rail and ports company also revealed it will reissue a call for tenders for a proposed leasing company for capital equipment by the end of this year.
The tender process, initially started in April 2023, was canceled due to non-compliance issues.
Transnet aims to finalize the roles for a planned separation in rail usage for minerals. This initiative will create a Rail Operating Company to compete with private sector companies in rail exports and an Infrastructure Manager to oversee the selection of companies with access to the rail line.
The current Infrastructure Manager is operating on an interim basis, with permanent appointments expected in the first quarter of next year.
A ‘Final Network Statement’ and the proposed tariff methodology for private sector operators on the rail network will be issued by September 30.
Transnet and private sector companies, including Kumba Iron Ore, await an independent technical assessment to identify key deficits in the rail network.
Last year, Kumba reduced its iron ore production guidance for three years due to Transnet Freight Rail’s shortcomings, with capacity on the iron ore line declining by 15% since 2019.
“These initiatives demonstrate Transnet’s commitment to structural reforms in response to policy and regulatory changes,” said Michelle Phillips, Transnet’s CEO since February.
“Introducing third parties into the rail and port networks is necessary to stimulate competition and address long-standing challenges such as underinvestment.”
