Logistics costs in South Africa
have a significant impact on
the global competitiveness
of ferro-alloys producers,
with rail availability being
a determining factor in
this, according to Cleopatra
Shiceka, general manager at
the office of Transnet’s CEO.
She said Transnet had
embarked on its seven-year
investment plan, worth R300
billion, to support the South
African economy, which
is widely supported by the
mining industry.
“We want to see our
customers competing in the
market. We know the first
in the market is the first to
gain and there is a lot of
competition. We will try,” she
said
So far this year, Transnet
has embarked on feasibility
studies for different projects,
including the upgrade and
expansion of rail links in the
Eastern Cape, and creating
rail lines from Northern
Cape, where the manganese
producers are, to Coega
Development Corporation and
through to the new deep-sea
port of Ngqura. However,
no physical construction has
started.
“The debate about our
limitations [as a nation], what
our competitiveness is, for how
long we are going to export
ore – that should drive this
[expansion],” Shiceka said.
The plan is for Transnet to
move 200 wagons at a time
and to create hubs for the
collection of manganese ore
in two places in the Northern
Cape, near the mines. The
hubs will be driven by private
partners, Shiceka said, a
process that has not yet been
started.
Shiceka assured delegates
that the projects would forge
ahead, with plans to start
construction of the manganese
rail line sometime in 2014 or
2015. The line would then be
complete in 2017 or 2018.
However, manganese
exporters have been instructed
to have the port of Port
Elizabeth vacated by 2016,
with the idea that they would
relocate to Coega to ship from
Ngqura.
Shiceka said that the move
from Port Elizabeth to Coega
would be a phased move.
“We are moving to Coega,
but it’s a system that must
still operate while we upgrade
gradually,” she said. “The port
was built for this purpose.”
Manganese producers told
FTW that they were frustrated
by the seemingly slow progress
of the Transnet programme,
adding that they had numerous
questions about how different
aspects of the roll-out would
work and affect them.
However, they were certain
that Transnet’s plans were
serious and would transpire.
“This is the most serious
I’ve seen Transnet about
rail expansion,” David
Wellbeloved, project director
at Asia Minerals South Africa,
said.
Cleopatra Shiceka ... creating
hubs for the collection of
manganese ore.
