Why is Exxaro shifting manganese transport from road to rail, and what cost savings does it expect?

Exxaro is shifting manganese transport from road to rail to cut costs and improve efficiency at its newly acquired manganese assets, as hauling by road is 37% more expensive than rail; logistics costs account for 43% of free-on-board costs for manganese, making rail adoption a critical lever for reducing overall export expenses.

What role does Transnet play in Exxaro’s rail transport strategy, and why is this collaboration significant?

Exxaro is collaborating with state-owned freight transport firm Transnet—which is opening parts of its network to private investment—to boost freight capacity; this partnership is essential because Transnet’s chronic underperformance (due to under-capitalisation, cable theft, and vandalism) has throttled bulk mineral exports, forcing miners like Exxaro to rely on costly road transport despite having a major new mine (Tshipi Borwa) producing 3.5 million metric tons annually, 46% of which is currently hauled by road.

South Africa's Exxaro Working to Transport More Manganese by Cheaper Rail

Jun 22, 2026

Exxaro Resources aims to shift manganese transport from road to rail to reduce costs, addressing Transnet's infrastructure bottlenecks. This strategy supports South Africa's dominance in global manganese supply for steel and battery production.

reuters

2026-06-22

South Africa's Exxaro Working to Transport More Manganese by Cheaper Rail

South Africa's Exxaro Working to Transport More Manganese by Cheaper Rail

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