Gqeberha harbour exports the bulk of South Africa's manganese ore, with thousands of tons transported and stored within the city annually. (Photo: Flickr / Flowcomm) 
Transnet on Wednesday signed a contract with United Manganese of Kalahari (UMK) for the transportation of manganese by rail from UMK’s mine in the Northern Cape to the ports of Port Elizabeth and Ngqura, amongst others, for export markets.
In 2022, links between UMK and the ANC’s investment arm, Chancellor House, were uncovered.
Read more: ANC’s manganese ‘gold’ mine joint venture with sanctioned Russian oligarch
On Thursday, the Markman Business Forum said that while the Transnet–UMK contract was a positive development, the last-mile bottleneck at the Port of Ngqura for truck transport remained a major headache and should be addressed as a matter of urgency.
Transnet said in a statement that the contract with UMK signifies the company’s confidence in Transnet’s ability to ensure efficient access to global markets.
Transnet Group Chief Executive 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 remained 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 was essential for sustaining economic growth and attracting further investment across all sectors.
However, Graham Taylor from the Markman Business Forum (MBF), where the bulk of manganese transport and storage companies are based, said they would like more positive steps to address the current road freight “bottlenecks” to the Port of Ngqura, as this would significantly assist local business concerns.
“The Markman Business Forum welcomes the announcement by Transnet of additional rail capacity for moving manganese to the ports for export. We are encouraged by the sterling results being delivered by Transnet’s commitment to improving logistics efficiencies. MBF member companies have similarly made significant improvements to rail-based manganese handling capacity in Markman to accommodate such growth.
“However, while we have improved rail infrastructure to support Transnet’s improved rail efficiencies, we have not resolved the last-mile bottleneck choking access to the Port of Ngqura.
“While we have had encouraging discussions with the Nelson Mandela Bay Municipality for direct access to Neptune Road, such discussions are bedevilled by the continued non-responsiveness of the Coega Development Corporation (CDC) to the urgent need for direct access to Neptune Road from the municipal-owned Ranger Road. The CDC remains the last-mile bottleneck that is displacing a significant proportion of manganese road logistics on to the communities of Motherwell,” he said.
The CDC is insisting that Neptune Road is not a public road.
“The business community of Markman needs urgent support from the government for the development, repair and maintenance of industrial park public infrastructure in Markman. Interventions are urgently required to accommodate the remarkable logistics industry growth in Markman and to support the emerging industrial synergies that will see the area generate even more growth, and support the recovery objectives of Transnet.
“The MBF has submitted the necessary applications for support to the government and awaits the type of positive outcome that will allow the private sector to turbocharge the South African industrial park programme. We have the solutions. They’ve been put forward for consideration and we remain optimistic that the government will remove the last-mile bottleneck,” Taylor said.
In a written answer to a question in the National Council of Provinces, Minister of Trade, Industry and Competition Parks Tau said the department was working with the MBF and the Nelson Mandela Bay Business Chamber to explore collaboration with other government departments to address the collapse of industrial infrastructure at Markman.
He confirmed that they had received a letter from the MBF complaining that they have no access to Neptune Road, which provides public access to the Port of Ngqura. The letter accused the CDC of non-compliance with the zoning scheme for the Coega Special Economic Zone and further claimed that “extortionate demands are being placed upon the Markman business community to make financial contributions for the maintenance costs of public roads”.
Tau added that a scheduled meeting with the municipality was cancelled, leading to the MBF filing a complaint with the Competition Commission.
Transport Minister Barbara Creecy, in a separate response, said the Competition Commission complaint was directed at the CDC (not the Transport Department). Transnet was cited because it explored buying sections of Neptune Road to improve access, but the purchase was not possible as the road lies outside the port limits. DM