This hub will serve as a staging post for the country’s economic hub and the broader Southern African Development Community (SADC) region.
On Wednesday, Transnet announced a “groundbreaking rail freight solution” poised to revolutionise the distribution of liquefied petroleum gas (LPG) across the country.
The initiative, launched in partnership with Singapore-based Petredec, marks a significant investment in the country’s energy infrastructure, catering to the rising demand for cleaner energy sources.
The project features a dedicated LPG train system, an intermodal hub and a storage facility located at Sentrarand in Gauteng. This hub will serve as a staging post for the country’s economic hub and the broader Southern African Development Community region.
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The facility will receive bulk LPG via rail from the Richards Bay LPG terminal in KwaZulu-Natal, developed in collaboration with Bidvest Tank Terminals in 2020.
Petredec, a company specialising in LPG distribution, will introduce South Africa’s first scheduled LPG train service. Each train, consisting of 75 wagons, will be capable of transporting over 2 500 tons of LPG, initially operating up to three times per week.
This new logistics system is expected to significantly enhance the efficiency, cost-effectiveness and environmental sustainability of LPG distribution across the country.
Petredec CEO Jonathan Fancher emphasised the importance of the partnership with Transnet, stating:
This strategic collaboration marks a pivotal step in improving LPG accessibility in South Africa.
“Our investment underscores our commitment to developing essential LPG infrastructure and optimising logistical solutions to make LPG more affordable for end-users. Our goal is to make clean cooking solutions, like LPG, more accessible to those who need them, contributing to a broader vision of improved energy security, public health, energy affordability and environmental conservation in South Africa and beyond,” Fancher said.
READ: Bidvest upbeat about eventual SA logistics fix – but its investments are tilted overseas
Transnet group chief executive Michelle Phillips hailed the project as a major milestone for the country’s energy sector. “The Sentrarand LPG hub and rail freight solution represent critical infrastructure that will bolster South Africa’s long-term energy security and developmental goals.”
She remarked:
This project enables bulk LPG distribution on an unprecedented scale in Africa.
In a related development, Transnet recently signed a loan agreement with the New Development Bank, aimed at enhancing the efficiency and capacity of South Africa’s freight rail system.
Earlier this week, the state-owned entity reported a loss of over R7 billion for the current financial year, an increase of approximately R2 billion from the previous year.
READ: Transnet’s loss worsens to over R7bn after hit from battle with Sasol and TotalEnergies
The African Rail Industry Association’s Mesela Nhlapo noted that, while the financial results reflect ongoing recovery efforts, increased revenue and operating expenses highlight the necessity of continued investment to stabilise Transnet’s operations.
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