Key Points
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Transnet and Exxaro signed a rail transport service deal to boost coal logistics.
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The partnership aims to sustain jobs and strengthen South Africa’s mining sector.
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It follows new rail agreements with manganese producers and policy shifts.
Exxaro Resources has signed a new rail transport service agreement with Transnet Freight Rail, extending a long-standing partnership that both sides say will help steady South Africa’s strained logistics network.
The deal, announced this week, builds on an existing framework and puts stronger emphasis on efficiency and sustainability.
For Exxaro, one of the country’s biggest coal producers, the agreement is also tied to its turnaround plan at the Leeuwpan coal mine.
Focus on jobs and supply chains
Under the terms, Transnet and Exxaro will work jointly on logistics planning and rail performance targets.
The aim is to improve transport capacity, secure supply chains, and strengthen South Africa’s trade competitiveness.
Exxaro Chief Executive Ben Magara said the partnership offers “strategic levers” to safeguard jobs and ensure operations remain viable.
“It’s good for the national economy, and specifically Transnet’s commitment to assist Exxaro in minimising job losses and sustaining mine viability,” he said.
Restoring trust with industry
Transnet CEO Michelle Phillips called the agreement an important step toward rebuilding confidence between the state-owned operator and private industry.
“This will unlock significant value not only for Transnet and Exxaro, but for the broader economy,” she said.
The deal follows recent transport agreements between Transnet and manganese producers under its export allocation framework.
Part of broader policy shift
It also comes as government prepares to open sections of the freight rail network to private operators — a major policy change in a system long dominated by Transnet.
Both companies said the renewed agreement reflects a shared commitment to restore rail efficiency, support growth in the mining sector, and build long-term sustainability in South Africa’s transport economy.
