South Africa’s state-owned logistics company Transnet is seeking a private-sector partner for a major manganese export corridor that could require investment of up to 44 billion rand ($2.7 billion).
The planned Ngqura corridor would connect manganese mines in the Northern Cape with export facilities in the Eastern Cape.
Transnet has issued a request for qualifications as it looks for a partner to help finance, develop and operate the infrastructure, according to Bloomberg.
The project is expected to initially handle around 12 million tonnes of manganese exports each year.
New manganese export corridor
The project would consolidate manganese exports through the Port of Ngqura in the Eastern Cape.
Currently, manganese shipments rely on several handling points and significant road transportation.
Transnet says the new system could reduce logistics costs while easing road congestion and other pressures around Nelson Mandela Bay.
The private-sector partner would also participate in rehabilitating and modernising rail infrastructure supporting the route.
Capacity could reach 16 million tonnes
The manganese export corridor is expected to have an initial annual capacity of around 12 million tonnes.
However, capacity could eventually increase to 16 million tonnes depending on demand and additional investment, according to Bloomberg.
The project would provide a more direct logistics route between mining operations in the Northern Cape and export facilities on South Africa’s coast.
Manganese remains important for South Africa
South Africa is a major global source of manganese and holds some of the world’s largest known resources of the mineral.
Manganese is primarily used in steel production. It is also increasingly used in some battery technologies.
That makes reliable rail and port infrastructure particularly important for South Africa’s ability to move the mineral to international markets.
Transnet seeks private investment
The Ngqura project forms part of Transnet’s broader effort to attract private capital and expertise into South Africa’s freight network.
The company has faced longstanding challenges across its rail and port operations, affecting the movement of minerals and other exports.
Under the proposed model, private investment would help finance and operate infrastructure while Transnet works to improve the performance of the country’s logistics system.
The manganese corridor would be one of the larger infrastructure projects being opened to private-sector participation as South Africa seeks to improve its mineral export capacity.