The deal, which includes 16 customers such as United Manganese of Kalahari (UMK), is being hailed as a major step forward for the company’s growth strategy.

Transnet’s Chief Business Development Officer, Yolisa Kani, described the agreement as a significant achievement that reflects the company’s transition from stabilisation to sustainable growth. “Signing a decade-long contract is a proud moment for us and our customers. It not only guarantees business for Transnet but also supports job creation and contributes to our country’s gross domestic product,” Kani said.

The contract comes at a time of major rail sector reform in SA. Recent policy changes have opened the rail network to private train operators, ending Transnet’s historical monopoly and increasing competition in the freight sector.

Kani noted that the restructuring of Transnet Freight Rail (TFR) has introduced vertical separation, with TFR operating trains while the Transnet Rail Infrastructure Manager focuses on maintaining the network. “These changes enable us to concentrate on efficiency, while ensuring the necessary investments are made in infrastructure,” she said.

She highlighted that the revenue secured through the long-term agreement would help address the backlog of rail maintenance and fund improvements to port infrastructure to accommodate increased manganese export volumes. Among the upgrades is a newly developed loop on the Northern Cape corridor, aimed at increasing throughput.

“This is not just about Transnet’s sustainability. It’s about being an enabler for the mining sector and helping to uplift the Northern Cape, where mining plays a central role in the regional economy,” Kani said.

She stressed that rail remains the most cost-effective export option and welcomed customers’ willingness to enter into long-term partnerships. “These agreements give us the financial stability to invest in infrastructure and create meaningful economic impact,” Kani added, noting that several similar contracts are expected to be finalised soon.

--ChannelAfrica--