Plan to streamline SADC transport

The New Development Bank has granted a R5 billion (US$ 280 million) loan to Transnet to improve South Africa’s freight rail infrastructure, locomotives, and wagons.

Transnet has begun increasing coal rail volumes to Richards Bay, with fewer security incidents, amid a decline in SA coal exports due to unreliable rail services.

Transnet is struggling with massive debt, widespread theft, and vandalism on its rail network, exacerbated by alleged corruption in its security tendering process.

Resgen has revealed that talks are underway to secure funding for its Boikarabelo mine in Limpopo Province of South Africa.

South Africa’s Transnet Freight Rail (TFR) has announced another achievement, breaking its monthly record for the amount of coal it transports to RBCT. TFR carried 7.46 Mt in August, a long way ahead of its previous best. Alan Waller, CEO of RBCT, said: “This is a major milestone, as it is the first time in 41 years of RBCT operation that we have offloaded more than 7 Mt per month.” It will be interesting to see if this high level of performance can be sustained over the months ahead.

In early October, Exxaro announced that it has signed a 10-year transport agreement with Transnet to carry 7.8 Mt of coal on the Lephalale line from the Waterberg Basin to Richards Bay Coal Terminal (RBCT). The deal is expected to trigger a big increase in output at Exxaro’s Grootegeluk mine, and the company’s CEO, Mxolisi Mgojo, said that it will invest ZAR10B (US$711M) in the area over the next five years.