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South Africa Seeks Private Partners for $2.7 Billion Manganese Export Corridor

South Africa is seeking private sector partners to develop and operate the Ngqura Manganese Export Corridor in a project that could require up to R44 billion, or about $2.7 billion, in investment. State owned freight and logistics company Transnet has opened the qualification process for investors to participate in the integrated rail and port project, which will connect manganese producing areas in the Northern Cape with the Port of Ngqura in the Eastern Cape. According to Bloomberg, the corridor is expected to handle an initial 12 million tonnes of manganese annually, with capacity potentially rising to 16 million tonnes as demand and investment increase.

The proposed development includes roughly 1,100 kilometres of rail infrastructure, a new manganese export terminal at Ngqura and the rehabilitation and maintenance of supporting rail infrastructure. The terminal alone is estimated to require about R16 billion, with an initial capacity of approximately 14.7 million tonnes a year. Under the proposed structure, private investors would finance, develop and operate significant parts of the corridor, while Transnet would retain ownership of strategic rail and port infrastructure. Business Day reported that bidders for the terminal must demonstrate financing commitments of at least R10 billion, while a separate infrastructure vehicle could require up to R20 billion for rail rehabilitation.

The project forms part of South Africa’s wider freight logistics reform programme as Transnet seeks private capital and expertise to address long standing rail and port constraints that have increased reliance on road transport and raised logistics costs for mineral exporters. South Africa is the world’s largest producer and exporter of manganese ore and holds a substantial share of global manganese resources, making efficient export infrastructure strategically important to the mining industry. The government identified the Ngqura Manganese Export Corridor as a priority private sector participation project in its 2026 rail reform programme, while the country’s 2026 investment project book estimates that a new 16 million tonne per annum Ngqura terminal could generate approximately R100 billion in annual export revenue.

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