Exxaro Resources Limited (Exxaro) and Transnet Freight Rail (TFR) have entered into a formal service agreement to enhance rail capacity and optimise long-term logistics.
The agreement has been signed in terms of an existing long-term agreement for collaboration to improve the performance of logistics channels, including contributing to Exxaro’s Leeuwpan mine turnaround plan announced recently.
It outlines clear performance expectations and joint planning initiatives to optimise rail capacity and long-term logistics.
A statement issued after the agreement was signed says it aligns with Exxaro’s commitment to operational efficiency and long-term sustainability and Transnet’s mandate to ensure the security of logistics supply, supporting the national objectives of strengthening South Africa’s trade and logistics.
“We believe this service arrangement strategically unlocks value for Exxaro and capacitates sufficient strategic levers for the group,” said Exxaro CEO, Ben Magara.
“The agreement is good for the national economy and specifically Transnet’s commitment to assist Exxaro in minimising job losses and sustain mine viability. We thank Transnet for the constructive manner in which this agreement has been reached.”
Transnet CEO Michelle Phillips said the company was confident the agreement would unlock significant value for both parties and for the broader economy.
“It reflects a shared commitment to rebuilding trust and delivering on our respective mandates for the benefit of all stakeholders.”
Both entities said the partnership reaffirmed their commitment to restoring and enhancing rail performance, promoting economic growth and driving competitiveness and long-term sustainability within the mining and transport sectors.
