Transnet Seeks Private Partners for R44 Billion Manganese Export Corridor

Transnet has issued a Request for Qualifications (RFQ) for a private-sector partner to develop and operate the Ngqura Manganese Export Corridor, a landmark project valued at up to R44 billion ($2.7 billion) that is expected to transform South Africa’s manganese export logistics.

The 25-year concession covers the corridor linking manganese-producing areas around Hotazel in the Northern Cape with the Port of Ngqura in the Eastern Cape, where a new manganese export terminal will be constructed. The corridor spans approximately 1,100 kilometres of rail infrastructure.

The deadline for applications is 26 February 2027 .

A FRAGMENTED SYSTEM IN NEED OF REFORM

Transnet said the current manganese export system, handled through multiple facilities around Port Elizabeth and Ngqura, has become “fragmented and inefficient”. This has resulted in multiple handling points, significant road haulage, increased logistics costs, and growing environmental and social impacts within the Nelson Mandela Bay metropolitan area.

The consolidation of export activities at a single new facility is expected to reduce road congestion, material handling movements, dust emissions, and other environmental effects.

South Africa exported a record 26.2 million tonnes of manganese in 2025, up from 22.3 million tonnes in 2024, according to Minerals Council South Africa. However, approximately 10 million tonnes of that total was hauled to ports by road because rail capacity could not absorb the volume.

INVESTMENT BREAKDOWN

According to the RFQ document, the estimated investment includes:

R10 billion to R20 billion for rail infrastructure rehabilitation
Approximately R16 billion for the new manganese terminal
Around R4 billion for train operations and rolling stock

The corridor is initially targeting throughput of approximately 12 million tonnes per annum, with potential to expand to 16 million tonnes as demand and investment allow. The planned terminal would have capacity to handle approximately 14.7 million tonnes annually, with provision to expand to around 16 million tonnes.

TWO-SPV STRUCTURE

Transnet has proposed a two-company structure for the partnership :

First SPV – Responsible for terminal development, terminal operations, rail operations, rolling stock management, and corridor operations. Transnet will own 51%, with the private consortium holding 49% through a holding company.

Second SPV – Wholly owned by the consortium’s holding company, responsible for financing, rehabilitating, and maintaining rail infrastructure. It will be paid through an availability-based infrastructure service agreement with the Transnet Rail Infrastructure Manager (TRIM).

Ownership of the rail infrastructure would remain with TRIM. Bidders for the second SPV must demonstrate at least R3.5 billion in financial commitment, while terminal bidders must secure financing commitments of at least R10 billion from lenders.

EXPORT MARKET PROFILE

Approximately 95% of South Africa’s manganese export volumes go to Asia, with China accounting for nearly 68% of all shipments, followed by India (16%), Singapore (3%), Malaysia (3%), and Japan (2%).

South Africa holds about 70% of the world’s known manganese reserves and is the world’s largest producer and exporter of the mineral, which is primarily used in steelmaking and increasingly in battery technologies .