Transnet and United Manganese of Kalahari sign 10-year contract

Transnet and United Manganese of Kalahari (UMK) on Wednesday signed a 10-year contract for the transportation of manganese by rail from UMK’s mine in the Northern Cape to ports for export markets.

Through the Manganese Export Capacity Allocation (MECA) 3 agreement, Transnet allocates rail and port capacity to manganese producers in South Africa for their export volumes.

Transnet said the contract with UMK signifies the company’s confidence in Transnet’s ability to ensure efficient access to global markets.

Transnet Group CEO, Michelle Phillips said, “We are encouraged by the vote of confidence expressed by UMK through their long-term commitment as part of the MECA programme. This agreement is a clear demonstration of our customers’ confidence in the efficiency and reliability of our services. It also bodes well for Transnet’s growth and sustainability, which is underpinned by our ambitious Reinvent for Growth Strategy amid various reform initiatives within the freight logistics sector.”

Malcolm Curror, UMK Chief Executive Officer, said that reliable rail freight services remain a key contributor to South African industry.

“By enabling the efficient movement of bulk commodities such as manganese, MECA not only positively adds to our national export capability but also to a greater competitive revitalisation of the country’s logistics network.”

He added that this is essential for sustaining economic growth and attracting further investment across all sectors. Curror further noted that the MECA agreement holds significant and and broader relevance tocurrent national dialogue regarding the mining sector in South Africa.

BUSINESS REPORT