By: Tarryn-Leigh Solomons
Exxaro Resources Limited (Exxaro) and Transnet SOC Ltd, through its Operating Division Transnet Freight Rail (TFR), have signed a formal service agreement aimed at enhancing rail performance under their existing Long-Term Agreement.
This strategic collaboration focuses on increasing efficiency across South Africa’s key transport corridors, directly supporting Exxaro’s recently announced Leeuwpan mine turnaround strategy. The agreement establishes defined performance targets, joint planning processes, and a shared commitment to improving rail capacity and optimising long-term logistics.
Driving Operational Excellence and Economic Growth
The partnership highlights Exxaro’s commitment to operational excellence and sustainability while aligning with Transnet’s mandate to provide reliable freight logistics solutions. Together, the two entities aim to strengthen national supply chains, bolster trade infrastructure, and contribute to South Africa’s broader economic objectives.
Mr Ben Magara, CEO of Exxaro, commented:
“Exxaro is pleased to have reached this agreement with Transnet. We believe this service arrangement strategically unlocks value for Exxaro and capacitates sufficient strategic levers for the Group. The agreement is good for the national economy and, specifically, Transnet’s commitment to assist Exxaro in minimising job losses and sustaining mine viability. We thank Transnet for the constructive manner in which this agreement has been reached.”
Advocate Michelle Phillips, Group CEO of Transnet, added:
“We are confident that this agreement will unlock significant value not only for Transnet and Exxaro, but for the broader industry and economy. It reflects a shared commitment to rebuilding trust and delivering on our respective mandates for the benefit of all stakeholders.”
Strengthening Rail and Mining Sectors
This service agreement reaffirms both organisations’ commitment to restoring and enhancing rail performance, ensuring the long-term sustainability of South Africa’s mining and logistics sectors. By jointly addressing systemic challenges and focusing on efficiency, Exxaro and Transnet aim to drive competitiveness and secure growth opportunities across the industry.
