The Logistics Group has built a port facility in South Africa that will enable increased volumes of a key battery metal to be offloaded from one of the world’s longest freight trains for export as the country struggles with a lack of rail capacity, according to its chief executive officer.
Volumes transported across the continent’s most industrialized nation by state-owned port and rail operator Transnet have declined over recent years due to corruption, mismanagement and a shortage of locomotives. An 861km line that runs from mines in Sishen to the Port of Saldanha on the west coast and is used by a 4km-long train that comprises 375 wagons has remained among the most reliable of its operations.
The Logistics Group, owned by Old Mutual's African Infrastructure Investment Managers, saw potential to increase efficiency by building the Saldanha Dry Bulk Terminal, a storage facility that can accept 100 tonnes per wagon rather than the 63 tonnes that existing operations in the area can process, CEO Anton Potgieter said. Before signing a single contract, the company "took a leap of faith," acquired the land and built the R200 million project, which includes a warehouse that can accept trains, he said in an interview.