By Adrian Ephraim
MINING companies are lending a hand to fix the crucial Sishen-Saldanha export line – by buying rail parts themselves and letting Transnet credit the cost against their transport bills.
This practical arrangement is part of the Ore Corridor Restoration Programme for the 861km line. It allows iron ore exporters to get essential materials much faster than the state-owned operator can through its own sluggish government tender processes.
Transnet confirmed the deal in response to questions from Cape Business News. “The assistance provided by exporters may include more speedy procurement of materials, and in such cases, reimbursement to the exporters is undertaken via offsets on existing commercial agreements,” the company said.
Essentially, mining houses in the Ore Users Forum (OUF) are cutting through supply chain delays, by paying for parts upfront and getting reimbursed through adjustments on their rail contracts. They are keeping the Western Cape’s vital iron ore exports moving while Transnet tackles maintenance backlogs.
Signs of progress
The hands-on approach seems to be working. Kumba Iron Ore reported that it shipped 10.2 million tons to the port in the third quarter of 2025, a 12% jump from 9.1 million tons during the same period last year.
Transnet credits the turnaround to better teamwork between its own divisions and industry partners. “This collective approach has contributed meaningfully to improved performance outcomes and reinforced confidence in the Iron Ore line’s operational resilience,” the company stated.
This partnership is formalised under a Mutual Cooperation Agreement, with a joint committee of Transnet and mining company representatives overseeing the work. Their shared goal, according to Transnet, is to restore the corridor to its “nameplate capacity.”
A R3.4 billion boost for Western Cape rail
Alongside this private-sector help, a R3.4 billion government investment from the Budget Facility for Infrastructure is being pumped into the line. The money is earmarked for urgent upgrades to the track, signals, and electrical systems on the route stretching from the Northern Cape to Saldanha Bay.
These repairs are critical. The line has been plagued by operational problems, including two derailments in the second quarter of 2025 alone, mostly due to broken rails. To fix this, Transnet is planning an overhaul that includes replacing nearly 800 kilometres of track—most of the line’s total length—over the next four years, highlighting just how much the infrastructure has degraded over the last decade.
Chasing old records
With these efforts, Transnet is aiming to move 57 million tons of iron ore and 5 million tons of manganese through Saldanha in the 2025/26 financial year. While ambitious, this target is still shy of the line’s all-time high of 59.7 million tons, set back in 2014/15.
“Improvement efforts are aimed at achieving and exceeding these numbers in the next few years,” Transnet said, adding that it currently has enough trains and wagons to handle the volumes it has promised to customers.
Meanwhile, Transnet is in talks with private train operators who were recently awarded slots to run their own services on the line. Details about the routes, schedules, and cargo are still under wraps until the final agreements are signed.
Between the miners stepping in to help, a major cash injection from the government, and the prospect of new operators on the line, the plan to revive one of South Africa’s most important economic corridors is finally gathering speed.
