Transnet plans to open up capacity allocation for emerging miners via the Ports of Gqeberha and Saldanha from April 2023.
Transnet spokesperson Ayanda Shezi announced the parastatal’s decision in a statement on Friday, saying that capacity would be opened up when its current long-term contracts came to an end.
“Transnet has issued a formal communiqué to all 10 manganese exporters recording the expiry of current contracts, which are set to wrap up on 31 March 2023. New contracts will be entered into with both new and existing miners, effective 1 April 2023,” said Shezi.
She said new contracting and capacity allocation processes had commenced, with the intention of enabling emerging miner ramp up.
“Transnet hopes to increase the current number of emerging miners that have access to rail and port capacity, from the current four to eleven, through introducing seven new entrants by the beginning of the next financial year,” Shezi said.
She said the currently emerging miner allocation was two million tons per annum (mtpa). “Transnet seeks to make an additional minimum of 2mtpa available for emerging miners, thereby creating 100% growth to a minimum of 4mtpa in this sector by April 2023. This constitutes a 25% share of total available capacity,” said Shezi.
Part of Transnet’s strategy to enable emerging miners is to look at ways of easing its business processes.
Some of these strategic steps include:
• Easing the burden of funding bank guarantees as a requirement for doing business for emerging miners.
• An arrangement where underwriters cover the risk of a guarantee by up to 50% and Transnet covers the remaining 50% is currently being finalised with underwriters.
• Transnet further committing to continue supporting emerging miners with loading capacity in the manganese space.
“Transnet would also like to reaffirm its commitment to its long-term expansion project, which includes enabling capacity growth from the current 16mtpa to 22mtpa by 2027. This ramp-up will further enable emerging miner growth,” Shezi added.