To boost export income, the government has agreed to permit private operators to run trains on these lines from April this year.

South African coal and iron ore exporters are preparing to sign investment agreements worth for billions of rand with state-owned logistics company Transnet to repair critical rail lines and enhance shipment capabilities.

The negotiations involve organisations representing companies such as Glencore and a unit of Anglo American, as stated by Ian Bird, head of transport and logistics for B4SA, reported Bloomberg.

“We are now at a point where something has to be done,” Bird said in an interview, noting that the condition of the rail lines affects both Transnet Freight Rail and third-party operators.

Poor maintenance and theft have led to the decline of freight rail lines, causing coal exports to fall to a 30-year low of 48 million tonnes (mt) in 2023, while iron ore railings have also hit a ten-year low.

On the other hand, coal railings increased to 52.1mt last year, the first rise since 2017, the report said.

This article originally appeared on mining-technology.com. Read it here.