South Africa Mining Logistics: Private Train Operators Boost Rail Capacity and Reduce Export Bottlenecks
South Africa’s mining logistics reforms are “moving in the right direction,” according to Minerals Council South Africa CEO Mzila Mthenjane, who emphasized that collaboration between the government and private sector is starting to yield tangible results, albeit at a slower pace than some stakeholders would prefer.
Speaking at the Africa Down Under conference in Perth on Wednesday, Mthenjane highlighted the recent approval of 11 private train operators to run 41 routes, covering all of South Africa’s major mining corridors, as a sign that logistics reforms are gaining traction.
The successful train operators will gain access to Transnet’s rail network, providing an additional 20 million tons of capacity per year over the next five years, Mthenjane said.
“We believe this is just the first window. Subsequent windows should allow production and volumes to increase up to 250 million tons per year,” he added.
Transnet, South Africa’s state-owned freight logistics company, has set a target of moving 250 million tons of freight by 2030, and Mthenjane believes increased private-sector participation will help achieve this goal.
The importance of logistics was further emphasized by Jupiter Mines MD Brad Rogers, who noted that land logistics account for about 35% of the Tshipi manganese mine’s production costs, compared with 10–15% for mining itself.
“Rail logistics for bulk miners are constrained in South Africa. At Tshipi, although we produce 3.6 million tons of manganese ore, we can only transport about half via rail,” Rogers said.
He explained that the constraint is not due to rail performance, but rather that exports have expanded over the last 15 years, outstripping rail capacity.
Engagement with Transnet over the past 18–24 months has been “very positive,” with initiatives underway to expand capacity and improve efficiency.
“We are encouraged that these constraints will eventually be resolved, enabling South Africa’s globally leading manganese sector to reach its full potential,” Rogers added.
In the interim, Tshipi is utilizing alternative routes, including road haulage and exports through Namibia’s Port of Lüderitz and South Africa’s Port of East London.
“Rail remains the biggest priority, but we are also innovating around other paths to market to reduce operating risks and costs,” Rogers concluded.
The collaboration between private operators and Transnet represents a significant step forward in easing South Africa’s rail bottlenecks, paving the way for a more efficient and globally competitive mining logistics network.
