Southern Africa
South Africa
Transport / Infrastructure
Northern Cape Freight Rail Corridors, South Africa
- South Africa’s Department of Transport (DoT) invited responses by 31 May to a request for information (RfI) that will be used to guide freight transport and logistics company Transnet and the Passenger Rail Agency of South Africa (PRASA) in developing private sector participation (PSP) projects for rail and port infrastructure and operations
- The RfI was launched in late March as part of the initial phase of South Africa’s PSP programme and focuses on three freight rail corridors. These include the Northern Cape-Saldanha Bulk Minerals Corridor and Northern Cape-Nelson Mandela Bay Corridor (primarily for iron ore and manganese exports)
- This PSP project covers pit-to-port rail, port, terminal infrastructure and equipment supporting the transport of iron ore from mines in the Northern Cape province’s Sishen-Postmasburg region to the Port of Saldanha in the Western Cape province
- It will also address the movement of manganese from mines located between Hotazel and Postmasburg to the Port of Saldanha and the ports of Elizabeth and Ngqura in the Eastern Cape’s Nelson Mandela Bay, as well as back-of-port arrangements
- The PSP project objectives include increasing rail volumes to grow the throughput of iron ore and manganese; improving the performance of the Saldanha iron ore export terminal and Saldanha multi-purpose terminal for manganese exports; raising the performance of the old Port Elizabeth bulk ore terminal up to at least 2030, along with the planned Ngqura manganese export terminal; and sourcing capital investment for the expansion and maintenance of the rail network, port terminals, and rail and port operations
- Once the capacity constraints are resolved, iron ore exports are expected to remain steady at 60 million tonnes per annum (mtpa), while manganese exports will increase from 20 mtpa in 2029/30 to 24 mtpa
- The intention of the PSP project is to promote private investment in Transnet infrastructure while the network remains state-owned
- A request for proposals (RfP) is planned to be launched in September
- Interim solutions to meet capital investment needs by the entity include project-based applications to the Budget Facility for Infrastructure. Transnet is also working with the National Treasury and the Presidency to develop a joint collaboration and funding policy to support immediate capital improvements by the private sector in priority freight corridors
- Background information for the RfI can be viewed here
