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South Africa Risks Losing Manganese Revenue Over Port Bottlenecks

by Oluwatosin Alabi

KEY POINTS


  • South Africa risks losing manganese revenue as rail and port bottlenecks increase logistics costs.
  • The MPC proposes a 12×12 strategy to transport 24 million tonnes annually through two export corridors.
  • Alternative routes, including Namibia’s Lüderitz port,are helping producers manage existing infrastructure constraints.

South Africa risks missing out on significant revenue, jobs and investment from its manganese industry if persistent rail and port constraints continue to limit the transportation of the mineral to international markets.

The South African Manganese Producers Consortium (MPC), which represents companies responsible for about 60% of the country’s manganese ore exports, has warned that improving logistics infrastructure is essential to unlocking the full economic value of the country’s substantial manganese resources.

The consortium is advocating a long-term strategy to transport 24 million tonnes of manganese ore annually through two major export corridors, Saldanha Bay and Gqeberha, with each handling 12 million tonnes a year. The proposed arrangement, known as the 12×12 strategy, is intended to improve efficiency, reduce transportation costs and strengthen South Africa’s competitiveness in the global manganese market.

The warning comes as some producers increasingly rely on alternative export routes, including Namibia’s Port of Lüderitz, to overcome capacity constraints affecting South Africa’s established rail and port infrastructure.

The use of Namibia’s Port of Lüderitz by South African manganese exporters has drawn renewed attention following the publication of Jupiter Mines’ financial year 2026 annual report.

The Australian-listed mining company reported that it sold 3.5 million tonnes of manganese during the financial year, exceeding its planned sales target. Of this volume, 828,000 tonnes were transported through Lüderitz, highlighting the growing importance of alternative export routes in supporting South Africa’s manganese trade.

The route connecting Upington in South Africa to Ariamsvlei in Namibia and onward to Lüderitz provides an additional logistics option for producers seeking to move their ore to international markets.

In response to questions about whether the route would be strengthened to accommodate higher export volumes, the MPC explained that it does not dictate which transport corridors individual producers should use.

According to the consortium, decisions about export routes are determined by each mining company’s operational requirements, commercial considerations, customer preferences and available logistics infrastructure.

However, it acknowledged that alternative routes, including Lüderitz, currently serve an important transitional purpose while South Africa works to restore and expand the capacity of its two principal manganese export corridors.

12×12 strategy targets 24 million tonnes annually

The MPC supports a dual-corridor approach that would see Saldanha Bay and Gqeberha each transport 12 million tonnes of manganese ore annually, creating a combined rail capacity of 24 million tonnes a year.

The strategy is intended to provide a sustainable foundation for long-term investment in rail infrastructure, port facilities and mining operations, while reducing the logistical challenges that have constrained the industry’s ability to expand exports.

Saldanha Bay is considered a relatively efficient bulk-commodity export corridor because it handles limited volumes of other types of freight. This allows manganese ore transportation to benefit from a comparatively straightforward logistics system.

The Gqeberha, also known as Nelson Mandela Bay, corridor, however, faces more complex operational challenges. Its rail network is used to transport various commodities, alongside passenger and automotive-related freight at different points along the route.

The situation is further complicated by the port’s four-terminal configuration, which adds to the operational demands of moving manganese ore from rail infrastructure to vessels for export.

Several manganese producers have therefore advocated a more balanced distribution of export volumes between the two corridors. Rather than concentrating 16 million tonnes annually on the more challenging Gqeberha route and only eight million tonnes on Saldanha Bay, the proposed 12×12 arrangement would distribute the volumes evenly.

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