Transnet sets deadline for construction of manganese rail line

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.