South Africa is seeking a private-sector partner for a major upgrade of its manganese export logistics network, with the project expected to require as much as 44 billion rand ($2.7 billion).
State-owned rail and ports operator Transnet SOC Ltd. issued a request for qualifications on Friday for private-sector participation in the Ngqura manganese export corridor.
The corridor connects manganese-producing areas in the Northern Cape with ports in the Eastern Cape, including Ngqura and Port Elizabeth.
Transnet said the existing export system has become fragmented and inefficient, contributing to increased reliance on road transportation and higher logistics costs.
The company also cited the environmental and social effects associated with moving larger volumes of manganese by road.
Transnet Turns to Private Capital
The proposed corridor upgrade is part of Transnet’s broader programme to bring private-sector capital and expertise into South Africa’s struggling freight infrastructure.
Under the arrangement, a private partner would participate in the development and operation of the manganese corridor, while helping improve the performance of the infrastructure used to move the mineral from mines to export markets.
Transnet said the programme is intended to attract investment while drawing on private-sector expertise to improve infrastructure performance.
The move comes as South Africa seeks to address long-standing constraints across its rail and port networks, which have affected the country’s ability to move bulk commodities efficiently.
Manganese Adds Strategic Importance
South Africa holds some of the world’s largest manganese reserves. The mineral is an important input in steelmaking and is also used in battery manufacturing.
The country’s manganese industry therefore depends heavily on reliable rail and port infrastructure to move production from inland mining areas to international markets.
The proposed Ngqura corridor is designed to strengthen that connection by improving the logistics chain between the Northern Cape mines and export facilities on the country’s eastern coast.
Transnet identified the ports of Ngqura and Port Elizabeth as among the facilities through which manganese is exported from South Africa.
The company said the current fragmentation of the system has increased the amount of manganese transported by road, adding to logistics costs and creating wider environmental and social pressures.
Applications Open Until February 2027
Companies interested in participating in the project have until February 26, 2027, to submit their applications.
The scale of the proposed investment makes the project one of the more significant opportunities within Transnet’s effort to involve private capital in South Africa’s freight infrastructure.
For the manganese industry, the outcome could determine how efficiently one of the country’s most important mineral exports reaches global markets.
