Transnet seeks private partner for R44bn manganese corridor

TRANSNET is seeking a private partner to help expand and operate a key manganese export corridor in a project that could cost as much as R44bn, Bloomberg reported.

The state-owned rail and ports operator on Friday issued a request for qualifications for the Ngqura manganese export corridor, which links mines in the Northern Cape with export ports in the Eastern Cape.

Transnet said manganese export operations at Port Elizabeth and Ngqura had become fragmented and inefficient. This has increased the use of road transport, pushed up logistics costs and added to environmental and social pressures.

The planned upgrade forms part of Transnet’s private-sector participation programme, under which it aims to draw in private investment and expertise to improve logistics infrastructure.

South Africa holds some of the world’s largest manganese reserves. The mineral is mainly used in steelmaking, but demand has also grown from battery manufacturers.

The project forms part of a broader effort to lift the capacity and efficiency of South Africa’s freight rail and port network, where years of underinvestment and operational problems have constrained mineral exports.

Applications close on February 26.

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