[Ferro-Alloys.com]  Transnet seeks private partner for R44bn manganese export corridor

Transnet is seeking a private-sector partner to help finance and operate a major overhaul of South Africa’s manganese export network, with potential investment of between R30 billion and R44 billion over 25 years.

The state-owned logistics company has issued a Request for Qualifications (RFQ) for the Ngqura Manganese Export Corridor, which will link mines around Hotazel in the Northern Cape with the Port of Ngqura in the Eastern Cape.

Applications close on 26 February 2027.

The project is intended to strengthen manganese export capacity, improve rail operations and reduce pressure on the existing logistics network.

How the public-private partnership will work

The proposed arrangement extends beyond a conventional port concession.

Transnet would retain a 51% stake in the corridor company, while a private consortium would hold the remaining 49% through a holding company.

Under an agreement with the Transnet Rail Infrastructure Manager, Transnet would pay its partner based on the availability of infrastructure at agreed performance standards.

Bidders for the manganese terminal will also need financing commitments of at least R10 billion from lenders.

The private partner would help develop and operate a new manganese terminal at Ngqura, while supporting rail operations, rolling stock and rehabilitation of the rail corridor.

New corridor targets 16 million tonnes annually

South Africa exported a record 26.2 million tonnes of manganese in 2025.

However, Transnet says the existing export system, spread across Gqeberha and Saldanha, has become fragmented.

This has pushed more cargo onto roads, increasing logistics costs and environmental pressures.

The proposed Ngqura corridor is designed to handle approximately 12 million tonnes of manganese annually in its initial phase, with capacity expected to increase towards 16 million tonnes.

The development would also allow Transnet to decommission the existing manganese terminal at Port Elizabeth.

Private investment central to Transnet’s recovery

Transnet chair Andile Sangqu has argued that private-sector expertise and investment in targeted terminals and corridors, including the Ngqura manganese project, are essential to unlocking capacity and sustaining the company’s recovery.

The proposal builds on Transnet’s decision to grant eleven private train operators rail access in May.

While those arrangements opened individual routes to private operators, the Ngqura project would extend private-sector participation across an entire export corridor.

What happens next?

The RFQ marks the first stage of the procurement process.

It is intended to identify bidders with the technical, financial and operational capacity to participate in the project.

Qualified bidders would then proceed to the request for proposals stage.

No private partner has been selected, and no investment has yet been committed.

The R44 billion figure represents the upper limit of the potential investment requirement, rather than confirmed funding.

With applications closing in February 2027, the procurement process will determine which bidders are eligible to compete for a role in developing and operating the Ngqura Manganese Export Corridor.

Transnet is looking for a private-sector partner to help develop and operate South Africa’s manganese export corridor in a project that could require up to R44 billion in investment.  

The corridor will link manganese mines in the Northern Cape to the Port of Ngqura in the Eastern Cape.

Transnet said the aim was to consolidate manganese exports at Ngqura, improve rail and port efficiency, and cut logistics costs.  

It said the private partner would help finance, develop and operate the export terminal, as well as support rail operations, rolling stock, and the rehabilitation and maintenance of the rail corridor.  

The rail infrastructure alone could require up to R20 billion in rehabilitation.  

The proposed corridor is expected to handle about 12 million tonnes of manganese a year initially, with the potential to rise to around 16 million tonnes.  

Transnet said the current export system was fragmented, with multiple handling points and significant road haulage contributing to higher logistics costs, road congestion, and environmental impacts.  

South Africa is the world’s largest producer and exporter of manganese ore, making the efficiency of the rail and port network important for maintaining its position in global markets.  

• [Editor:tianyawei]