Manganese is the export flow South Africa moves furthest by rail, and the Hotazel to Ngqura corridor has been the constraint on how much of it reaches a deepwater berth. Bringing a partner in for 25 years puts corridor capacity and a new terminal into one procurement rather than leaving each to Transnet's own balance sheet.
Qualification is the first step of several. The measure of the process will be how many credible parties reach the proposal phase, and whether the corridor's forecast export growth survives contact with the terms Transnet eventually puts on the table.
- Transnet has issued a Request for Qualification for a strategic partner in the Ngqura Manganese Export Corridor project.
- The private sector participation project runs for 25 years.
- The corridor runs from Hotazel in the Northern Cape to the Port of Ngqura in the Eastern Cape.
- A new manganese terminal is to be constructed at Ngqura.
- Transnet forecasts that the project will expand rail exports by 20%.
- Parties meeting the qualification requirements will be invited into a subsequent Request for Proposals phase.
Transnet SOC Ltd, has issued a Request for Qualification (RFQ) to commence the selection process for a strategic partner for the Ngqura Manganese Export Corridor (NMEC) Private Sector Participation (PSP) project for 25 years.
The NMEC project forms part of Transnet's growth strategy to improve freight network performance, support export growth and enhance the competitiveness of South Africa's logistics system. The corridor is expected to play a key role in strengthening the country's manganese export value chain. The corridor runs from Hotazel in the Northern Cape to the Port of Ngqura in the Eastern Cape, where a new manganese terminal will be constructed leading to an expansion of rail exports by a forecasted 20%.
South Africa is home to some of the world's largest manganese reserves, positioning the country to benefit from growing global demand for the mineral. The development and strengthening of an efficient and reliable export corridor will support the mining sector, improve export competitiveness and contribute to job creation and broader economic growth and development objectives.
The project forms part of Transnet's Private Sector Participation programme, through which the company seeks to attract investment and leverage private sector expertise to strengthen infrastructure performance, expand capacity and unlock growth opportunities across key freight corridors.
As part of the competitive procurement process, interested parties will be required to demonstrate their technical capability, operational experience and financial capacity, as well as compliance with Transnet's requirements. Respondents will also be required to outline their approach to delivering sustainable socio-economic benefits and community upliftment through the project. Parties that meet the qualification requirements will be invited to participate in a subsequent Request for Proposals (RFP) phase.
Transnet remains committed to conducting the procurement process in a fair, transparent and competitive manner, in accordance with applicable governance and regulatory requirements.
