South Africa is slowly putting its iron ore exports back on track.
The government has revealed it is spending ZAR8.9 billion until 2030 to repair and upgrade the essential 861 km freight railway line from Sishen in the Northern Cape to the port of Saldanha Bay in the Western Cape.
‘The Transnet Rail Infrastructure Manager’s (TRIM) long-term Ore Line Restoration Programme, which runs until 2030, is valued at approximately R8.9 billion and is aimed at restoring reliability, improving capacity and supporting economic growth through a safe, efficient and reliable rail,’ Minister of Transport Barbara Creecy said while visiting the site during the annual 10-day maintenance shutdown in October.
“This corridor is therefore far more than a railway line. It is an economic artery that supports exports, industrial growth and employment across our economy,’ she said.
During this year’s shutdown, TRIM invested ZAR2.2 billion in restorative maintenance, which included replacing rail and sleepers, screening ballast, replacing and maintaining turnouts, accelerating track maintenance, rehabilitating formations and installing culverts. Electrical and signalling maintenance is also under way.
Cape Business News reports that mining companies are buying rail parts themselves, with the cost being offset against their transport bills.
The reasoning is the private sector can access parts much faster than the state.
‘The assistance provided by exporters may include more speedy procurement of materials, and in such cases, reimbursement to the exporters is undertaken via offsets on existing commercial agreements,’ Transnet told the news site.
In the past Kumba Iron Ore, which operates South Africa’s biggest open-cast iron ore mine in Sishen, has reportedly had to tailor its output in line with capabilities of the freight line.
Kumba Iron Ore CEO Mpumi Zikalala said the company and other members of the Ore Users Forum were working closely with Transnet during the ore line restoration project.
‘We ask Transnet if there’s anything that they need, and if there is, we jump because we understand that we can only be successful when the corridor and Transnet are successful,’ she said at the Joburg Indaba.
The ore line restoration is being complemented with a strategic investment in the Port of Saldanha where the Transnet National Ports Authority has invested ZAR750 million upgrading the power system, enabling the port to install and operate a third tippler, to support higher export volumes, according to Creecy.
