South Africa Coal and Iron Ore Firms Seek Rail Fixes.
South African coal and iron ore companies want to sign deals with Transnet, the state-owned logistics firm, next month.
The deals could lead to billions of rand in investments. The money would go to repair key rail lines and boost exports.
Groups representing Glencore and an Anglo-American unit are in talks with Transnet. They are working out terms, said Ian Bird. He is head of transport for business group B4SA.
B4SA is partnering with the government. The goal is to fix South Africa's poor transport and energy systems.
Coal exports fell to a 30-year low in 2023 as rail lines failed, and iron ore shipments hit a 10-year low. The drop is due to theft and lack of maintenance.
The government will let private firms run trains from April. This should increase exports and income.
"Something has to be done," Bird said. The rail crisis affects both Transnet and outside operators.
The cost to fix the coal line is about 12.9 billion rand over three years, and for the iron ore line, it is 9 billion rand.
Transnet said last year that repairing all its tracks would take 64.5 billion rand over five years.
Transnet told Bloomberg the customer deals are "on track." The investment is needed to move more goods, it said.
The agreements should bring in private money and expertise. But the terms have not been made public yet.
South African coal and iron ore companies want to sign deals with Transnet, the state-owned logistics firm, next month.
The deals could lead to billions of rand in investments. The money would go to repair key rail lines and boost exports.
Groups representing Glencore and an Anglo-American unit are in talks with Transnet. They are working out terms, said Ian Bird. He is head of transport for business group B4SA.
B4SA is partnering with the government. The goal is to fix South Africa's poor transport and energy systems.
Coal exports fell to a 30-year low in 2023 as rail lines failed, and iron ore shipments hit a 10-year low. The drop is due to theft and lack of maintenance.
The government will let private firms run trains from April. This should increase exports and income.
"Something has to be done," Bird said. The rail crisis affects both Transnet and outside operators.
The cost to fix the coal line is about 12.9 billion rand over three years, and for the iron ore line, it is 9 billion rand.
Transnet said last year that repairing all its tracks would take 64.5 billion rand over five years.
Transnet told Bloomberg the customer deals are "on track." The investment is needed to move more goods, it said.
The agreements should bring in private money and expertise. But the terms have not been made public yet.
