Transnet and UMK Lock In 10-Year Rail Deal for Manganese Exports

United Manganese of Kalahari (UMK) has become the first major miner to officially sign the Manganese Export Capacity Allocation (MECA) 3 agreement with Transnet SOC Ltd. The 10-year deal will see manganese transported by rail from UMK’s Northern Cape operations to ports for international export.

The long-term contract marks a significant milestone in the state-owned logistics company’s ongoing turnaround plans and its broader strategy to rebuild confidence in South Africa’s rail freight sector. Under the MECA programme, Transnet allocates dedicated rail and port capacity to manganese producers looking to export their volumes, helping to stabilise and streamline the movement of the critical commodity.

Speaking on the sidelines of the signing ceremony, Transnet Group Chief Executive Michelle Phillips welcomed the agreement, saying it was a strong signal of growing trust in the parastatal’s ability to perform.

“We are encouraged by the vote of confidence expressed by UMK through their long-term commitment as part of the MECA programme,” said Phillips. “This agreement is a clear demonstration of our customers’ confidence in the efficiency and reliability of our services. It also bodes well for Transnet’s growth and sustainability, which is underpinned by our ambitious Reinvent for Growth Strategy amid various reform initiatives within the freight logistics sector.”

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UMK Chief Executive Malcolm Curror echoed this sentiment, emphasising the critical role reliable rail freight plays in the country’s broader industrial landscape.

“By enabling the efficient movement of bulk commodities such as manganese, MECA not only positively adds to our national export capability but also to a greater competitive revitalisation of the country’s logistics network,” Curror stated.

He further stressed that the MECA agreement has wider importance beyond just manganese exports.
“This is essential for sustaining economic growth and attracting further investment across all sectors,” said Curror, adding that the contract holds significant and broader relevance to the ongoing national dialogue about the mining sector and South Africa’s logistics future.

The deal is seen as a step forward in easing port and rail bottlenecks, which have long frustrated exporters. It also sets the tone for further partnerships between Transnet and other miners under the MECA framework.