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Transnet-Swazi's $2.1bn rail link will free capacity for coal freight

January 13, 2012 - 14:11 GMT Location: Johannesburg

KEYWORDS: Transnet , Swazi Rail , coal , South Africa , Mozambique , Richards Bay

South African rail group Transnet and Swazi Rail are set to go ahead with a R17 billion ($2.1 billion) greenfield rail project, which would free capacity for coal freight on the existing line to the Richards Bay Coal Terminal on the south coast of South Africa.

The two logistics companies announced the go-ahead on Thursday January 12, with Transnet ceo Brian Molefe stating that the new 146km link would increase rail capacity to the coal port terminal to almost 100 million tonnes, up from the existing 72 million tonnes. This would bring the rail line capacity closer to Richards Bay’s capacity of 91 million tonnes. The line is scheduled to be commissioned in 2016 and will run between Lothair in SA and Sidvokodvo in Swaziland. It would divert freight currently moved on the line between Ermelo and Richards Bay through Swaziland, easing constraints on South Africa’s rail...

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