Around 1.5km of rail infrastructure at the port of Gqeberha has been washed away or covered in debris by heavy storms along South Africa’s southern coast, forcing Transnet to suspend train operations. 

The rail link at Gqeberha port is connected to the main Cape Corridor line, which functions as a central hub for trains transporting manganese ores from the Kalahari Manganese Fields for export. Gqeberha port is the industry-designed port of export for manganese, but investment in infrastructure has failed to keep pace with demand, resulting in increased maintenance backlogs. The relocation of the Gqerberha Port manganese export terminal to the Port of Ngqura, which was expected to be completed this year, adding an additional 16Mtpy capacity, has not yet been completed.

Transnet has consistently posed a major challenge to the manganese and other bulk commodity industries in South Africa, grappling with daily incidents of theft and vandalism of cables, a shortage of maintenance parts, and a deficiency of wagons. Extreme weather conditions are adding to the supply chain disruptions and have allowed bulk ores to track relatively higher prices compared to their downstream alloy counterparts, which are feeling pressure from struggling global economies and steel demand.

Despite ongoing disruptions, manganese export volumes are increasing, up 10.5% year-on-year based on trade data available to July, even considering Transnet’s’ scheduled maintenance shutdown in April. The increase is mainly driven by trucking picking up additional volumes as rail infrastructure remains unreliable. The recent additional rail capacity through the Mamathwane crossing loop now allows for an extra four rail slots per week, augmenting the existing 32 trains per week and should see rail regain some market share. This expansion has also facilitated the opening of the East London port for manganese exports, the latest port to diversify manganese logistic routes.