South Africa’s state run port and rail utility Transnet SOC Ltd plans to complete a feasibility study on expanding a manganese rail line to its deepwater Ngqura export harbor in Eastern Cape Province by February.

Mr Siyabonga Gama, head of the company’s freight rail business told reporters at the Tshipi mine in Northern Cape province that Transnet is seeking to expand capacity on its line to the city of Port Elizabeth, which passes Ngqura, to 12 million metric tons a year from 7 million tons now. He said that Transnet may boost the figure to as much as 22 million tons after 2017.

Mr Gama said that manganese producers including African Rainbow Minerals Ltd and BHP Billiton Plc’s 60% held Samancor Manganese that are seeking access to a line used to transport iron ore from the mining center of Sishen in the Northern Cape to the West Coast harbor of Saldanha won’t be able to use the railroad.

He added that “We need a single channel to run iron ore, and a different channel to run manganese adding that Saldanha will remain an iron port.”

South African manganese producers are facing rail and port infrastructure constraints. Transnet is able to transport about 4.8 million tons a year by rail for export from Port Elizabeth and 1 million tons through Durban, Africa’s busiest port. About 1 million tons are trucked to Richards Bay harbor.

(Sourced from Bloomberg)