Spoornet-Sasol sets 1mta chemicals export target

10-Nov-05

South African rail operator Spoornet aims to double capacity to transport chemicals by petrochemicals group Sasol by 2007. Railways utility Spoornet and petrochemicals group Sasol have signed-off on a collaborative supply-chain deal, which should see a doubling of railed tonnage of specialty chemicals over the next three years. The initiative, known as Project Mamba, relates to the transportation of solvents, olefins and surfactants from Secunda and Sasolburg through the ports of Richards Bay and Durban. This plan is in line with the government's efforts to cut the cost of doing business in Africa's biggest economy as it pursues a 6% economic growth target by 2010 and will also boost the state-owned rail operator's revenues. At present, Spoornet freights less than 600 000 tpa of these chemicals, despite having an installed capacity on the corridor of 700 000 tpa. The contract will reportedly increase revenues for Spoornet and provide Sasol with service-level guarantees.