South Africa’s state-owned logistics company, Transnet, is spearheading a major shift towards Public-Private Partnerships (PPPs) to revitalize its struggling rail and port infrastructure, directly enabling mining companies to invest in and operate critical parts of the logistics chain. This collaboration, marked by the licensing of private rail operators and a series of multi-billion-rand infrastructure projects, is designed to resolve long-standing capacity constraints and boost the export of key commodities like manganese, iron ore, and chrome .
🚂 The Strategic Shift: Opening Access and Attracting Investment
For years, South Africa’s mining sector has been hampered by logistics inefficiencies due to cable theft, vandalism, and a lack of maintenance. In response, Transnet has moved beyond policy discussions to execute tangible reforms aimed at “crowding in private sector capital and expertise” .
- Licensing Private Rail Operators: In a landmark move, Transnet granted 10-year operating licenses to 11 private train operating companies (TOCs) in August 2025 . This open-access model allows private firms to run trains on the national network, with the potential to unlock an additional 20 million tonnes of annual freight capacity . One example is the mining company Menar, which plans to invest billions of rands in locomotives and wagons to transport its own and other companies’ minerals from pit to port .
- Government and International Funding: The government has backed these reforms with significant financial support, approving R94.8 billion (approx. $5.4 billion) in additional funding for Transnet in mid-2025. This is in addition to loans from international lenders like the African Development Bank and the New Development Bank .
🏗️ Flagship PPP Projects: From Ports to Pipelines
Several high-profile projects are at the forefront of this partnership drive, each targeting a specific bottleneck in the export value chain.
🚢 Manganese Export Terminal at Ngqura
A consortium of major manganese producers—including African Rainbow Minerals (ARM), South32, and Anglo American—is preparing to bid for a concession to design, build, and operate a new export terminal at the deep-water Port of Ngqura . The project aims to increase South Africa’s manganese export capacity by 16 million tonnes per year and consolidate exports from an aging facility . Formal bids are expected to be invited around April 2026 .
⛽ Zululand LNG Terminal
Transnet has entered into a joint venture with Vopak Terminal Durban to develop South Africa’s first liquefied natural gas (LNG) import terminal in Richards Bay. This 25-year project is part of a strategy to enhance energy security as the country transitions away from coal .
⚙️ Richards Bay Dry Bulk Terminal
To improve exports of chrome and magnetite, Transnet plans to issue a request for proposals for the Richards Bay dry bulk terminal. The goal is to leverage private-sector funding for infrastructure upgrades and modernized operations to enhance efficiency and throughput .
📈 Tangible Progress: New Agreements and Corridor-Specific Plans
Beyond these major projects, new partnership models are delivering measurable results.
- Long-Term Capacity Agreements: Transnet has signed 10-year Manganese Export Capacity Allocation Agreements (MECA3) with major miners like Tshipi é Ntle and Assmang. This provides the predictability needed for miners to plan investments, moving away from a restrictive quota system to a demand-driven model . The goal is to boost annual manganese exports from roughly 20 million tonnes currently to 30 million tonnes by 2030 .
- Iron Ore Corridor Revitalization: For the critical Sishen-Saldanha iron ore corridor, exporters are pushing for an “integrated franchise model.” This would involve a third party operating the entire 861-kilometer rail system to transport both iron ore and manganese, while Transnet retains asset ownership . This follows a technical assessment to restore the corridor’s capacity to 60 million tonnes per year .
🗓️ What to Watch in 2026 and Beyond
The momentum behind these reforms is set to continue with several key milestones expected this year.
- Q2 2026: Transnet is expected to issue a request for proposals to establish a new rolling stock leasing company (LeaseCo), which will manage and lease locomotives and wagons to private operators .
- April 2026: Formal bids for the Ngqura manganese terminal concession are expected to be invited .
- Ongoing: Private operators like Menar are in the process of securing investments and finalizing their entry into the market as newly licensed TOCs .
These partnerships mark a significant evolution in South Africa’s logistics landscape, shifting from a state-monopolized model to a more collaborative, efficient, and competitive system aimed at restoring the country’s position as a reliable global trading partner .
I hope this overview is helpful for your analysis. Are you particularly interested in the details of any one project, such as the manganese terminal or the new rail operating licenses?
This response is AI-generated, for reference only.
