Sasol (JSE: SOL, NYSE: SSL) and Transnet Freight Rail (TFR), an operating division of Transnet SOC Ltd. (Transnet) and owner of South Africa’s railway, ports and pipeline infrastructure, today announced a first-of-its-kind public-private partnership to improve rail transport reliability in South Africa.
Under the five-year agreement, Transnet will deliver ammonia from Sasol’s Secunda and Sasolburg facilities to the company’s customers through a dedicated fleet of 128 ammonia tankers. In turn, Sasol will fund Transnet’s maintenance and repair programme for the fleet.
“Sasol’s partnership with Transnet is an investment in South Africa’s rail infrastructure network, a critical economic driver for the country and a key business enabler for Sasol,” said Sasol Vice President for Base Chemicals, David Mokomela. “The result will improve service to our customers and give us the transport capacity and reliability we need to respond to growing market demand. As one of South Africa’s largest companies, we are proud of this public-private partnership, which signals progress in advancing the country’s growth objectives.”
“This strategic partnership with Sasol demonstrates what is possible through collaboration and partnership—a foundational element of TFR’s Response Strategy,” said Acting TFR Chief Executive Russell Baatjies. “We appreciate Sasol’s support of this deal. It is a significant step toward addressing the industry’s current capacity challenges and protecting the ammonia rail supply—a critical material used in South Africa’s agriculture, mining and chemical markets,” he added.
TFR and Transnet Engineering (TE), who will execute the Sasol ammonia fleet’s maintenance and repair work, expect additional revenue generation from anticipated increased haul volume and the Sasol-funded maintenance and repair work.
TFR, which is Transnet’s largest Operating Division, provides the rail network infrastructure and operates rail services across major corridors to transport a broad range of bulk and general freight commodities, including mining, agricultural, manufacturing goods, bulk liquids, containerised freight and automotive units and components for export, regional and domestic markets. Freight Rail is recognised as a heavy haul rail operator for coal and iron ore on export lines and recently extended this capability to export manganese on the iron ore and Gqeberha lines. The Freight Rail network and rail services provide strategic links between ports, freight terminals and production hubs.
Sasol Chemicals produces and sells more than 540 000 tonnes of ammonia annually. It is used to make a variety of fertilisers and industrial chemicals for the agriculture, mining, textile, and metalworking industries.
Sasol is a global chemicals and energy company. It harnesses its knowledge and expertise to integrate sophisticated technologies and processes into world-scale operating facilities. It safely and sustainably sources, produces and markets a range of high-quality products in 22 countries, creating value for stakeholders.
