Transnet is seeking a private partner for a manganese export corridor that could cost up to R44bn, in a fresh step towards moving the ore terminal from Gqeberha’s harbour to the Port of Ngqura.
The project would combine a new terminal at Ngqura with upgrades to the rail route carrying manganese from Hotazel in the Northern Cape to the Eastern Cape coast.
Transnet issued a request for qualifications (RFQ) this week.
It is the first stage of a process intended to test whether prospective partners have the financial capacity and experience to deliver the project.
Those that qualify would be invited to submit proposals. No partner has yet been chosen.
The Herald reported in April that the Transnet National Ports Authority had given councillors a commissioning date of between 2030 and 2031 for the Ngqura terminal.
At the time, the authority said land and a berth were available, but the conveyor system still had to be built, and the rail line from the Northern Cape had to be upgraded.
Earlier targets have come and gone. In 2021, premier Oscar Mabuyane said the terminal would move by the end of that year.
Transnet’s new RFQ does not establish a revised date for the move.
The RFQ put the indicative cost of the integrated project at R30bn to R44bn.
About R16bn is estimated for the new terminal, with a further R10bn to R20bn for rail infrastructure and about R4bn for rail operations and rolling stock.
Under the proposed structure, Transnet would retain 51% of a company responsible for terminal and corridor operations, with the private partner holding 49%.
A separate company, wholly owned by the private partner, would finance, rehabilitate and maintain the supporting rail infrastructure.
The proposed partnership would run for about 25 years.
Transnet says the corridor would initially handle about 12.6-million tonnes of manganese a year.
At the same time, its terminal plans provide for an initial capacity of about 14.7-million tonnes, expandable to about 16-million tonnes if demand warrants it.
In its statement announcing the tender last week, Transnet forecast a 20% expansion in manganese exports by rail.
The relocation has implications beyond the export industry.
Residents and businesses have long complained about ore dust and the effect of manganese trucks on city roads.
Municipal monitoring presented this year found serious dust problems around the harbour and Markman, though Transnet disputed the metro’s assessment of harbour air quality.
The delayed closure of the manganese and liquid bulk terminals has also held back plans for a waterfront at the Gqeberha harbour.
Transnet says applicants must demonstrate technical expertise, operational experience and financial capacity.
They must also set out how they would deliver benefits to communities along the corridor.
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