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Sasol, Transnet ammonia deal

Sasol and TFR announced that they have entered into a partnership where TFR will use its 128 ammonia tankers to deliver ammonia from the facilities of Sasol to the latter’s customers. In return, Sasol will fund Transnet’s maintenance and repair programme of its fleet.

Minister in the Presidency Khumbudzo Ntshavheni said Cabinet welcomed the partnership between Sasol and Transnet Freight Rail.
Minister in the Presidency Khumbudzo Ntshavheni said Cabinet welcomed the partnership between Sasol and Transnet Freight Rail. Supplied by Transnet

Minister in the Presidency Khumbudzo Ntshavheni has described the partnership between Sasol and Transnet Freight Rail (TFR) as a milestone that will turn around the fortunes of TFR. She said the Cabinet welcomed the partnership between Sasol and Transnet Freight Rail.

Transnet has faced a decrease in volumes of cargo it transports on the railway networks because of damage to infrastructure.

Ammonia is almost invariably transported in the liquid state; therefore, it must either be compressed or refrigerated or some combination of the two. Ammonia storage tanks may be classified as fully refrigerated, semi-refrigerated or pressurised, and a similar classification can be applied to transport equipment.

The minister said the partnership between Sasol and Transnet reinforces the work of the freight logistics roadmap to turn around the sector. Cabinet approved the Freight Logistics Roadmap at the end of last year.

Ntshavheni, who was briefing the media on Thursday, said this partnership showed that the country can revive the economy and address challenges faced by the sector.

“Cabinet welcomed the first of its kind public-private partnership agreement between Sasol and Transnet Freight Rail to improve the reliability of the rail transport system. Under a five-year agreement, TFR will use its fleet of 128 ammonia tankers to deliver ammonia from Sasol facilities to customers. In return Sasol will fund their maintenance and repair programme of the fleet.

“The partnership advances work on the country’s freight logistics roadmap to turn around sector. The partnership demonstrates how together we can overcome our pressing challenges,” said Ntshavheni.

Source: Transnet