State-owned Transnet Freight Rail (TFR) says it is providing additional capacity for the export of manganese through the extension of the current Mamathwane crossing loop in the Northern Cape.

This development has the potential to generate additional revenue for TFR and an estimated R4.4-billion in foreign earnings for the South African economy, the entity highlights.

The extension of the current loop, which is scheduled for completion at the end of July, is aimed at improving efficiencies and translates to a potential 1.5-million tonnes of additional capacity.

The construction of the loop will capacitate export efficiency in both the Cape and Ore Corridors, TFR says.

The entity says it is encouraged by this new development as a significant step towards creating additional capacity.

The longer-term expansion project will increase manganese volumes from 16-million tonnes to 22-million tonnes by 2027/28, TFR points out.

It adds that the loop extension will ensure maximum slot use on the line between Sishen and Hotazel, enabling the movement of additional trains in this constrained section.

Currently, TFR runs 104 wagon trains to Port Elizabeth and 125 wagon trains to Saldanha Bay. The loop extension will result in an increase of an estimated four trains a week.

The bottleneck in the rail network from the Manganese Basin in Hotazel in the Northern Cape to Port Elizabeth, or Saldanha Bay, is the line between Hotazel and Sishen. This section of the line is currently maxed out in terms of the number of slots that TFR can enable, the entity explains.

It says that extending this loop will enable a sizeable number of slots in addition to the current capacity in the constraining section between Sishen and Hotazel.

TFR mentions that it has been engaging with industry players – big and small – on a regular basis, to explore areas of collaboration in either improving efficiencies or creating new capacities.

Outside of this project, TFR says it is embarking on several other capacity-creation projects in partnership with key industry players.