Minerals Council, Transnet to establish joint structures to improve rail, ports performance

19th December 2022 By: Marleny Arnoldi - Creamer Media Contributing Editor Online

Minerals Council, Transnet to establish joint structures to improve rail, ports performance

The Port of Saldanha Bay

State-owned freight utility Transnet and the Minerals Council South Africa have agreed to form joint collaborative structures to ensure all possible actions are taken to stabilise and improve the throughput of South Africa’s rail and ports systems.

Transnet recognises the integrated nature of the mining industry as part of the logistics system and has agreed to mutually focus on stabilising the whole system’s performance.

The parties agree that stabilisation and recovery of the ports and railways are in the interest of all parties in the value chain.

The entities will establish an oversight panel and a recovery steering committee, as well as continue with the work being done through channel optimisation teams for each of the country’s major commodities – coal, iron-ore, manganese and chrome.

The oversight panel will include principles and office bearers of the Minerals Council and the Transnet board, while the recovery steering committee will be jointly chaired by  Minerals Council president Nolitha Fakude and Transnet chairperson Popo Molefe.  

The five-a-side recovery steering committee will also comprise Transnet board members, the Minerals Council CEO and CEOs of companies that produce bulk commodities.

The channel optimisation teams, which already exist, will continue seeking priority practical solutions to improve flows across the system organised across corridors.

Fakude says the council is determined to find practical solutions to the rail and port challenges of the country and to ensure that all producers enjoy inclusive growth that comes from an improved logistics system.

Molefe adds that Transnet looks forward to an equally open and constructive relationship with the Minerals Council and key Transnet customers to stabilise the performance on the channels, for the benefit of the country.