Energy giant, Sasol, and Transnet Freight Rail have announced a ground-breaking public-private partnership to improve transport reliability in South Africa and optimise efficiencies.

Under the five-year agreement announced on Wednesday, TFR will deliver ammonia from Sasol’s Secunda and Sasolburg facilities to the company’s customers using a dedicated fleet of 128 ammonia tankers.

As part of the deal, Sasol will fund Transnet’s maintenance and repair programme for the fleet.

“Sasol’s partnership with Transnet is an investment in South Africa’s rail infrastructure network, a critical economic driver for the country and a key business enabler for Sasol,” said Sasol vice president for Base Chemicals, David Mokomela.

“The result will improve service to our customers and give us the transport capacity and reliability we need to respond to growing market demand.

“As one of South Africa’s largest companies, we are proud of this public-private partnership, which signals progress in advancing the country’s growth objectives.”

“It is a significant step toward addressing the industry’s current capacity challenges and protecting the ammonia rail supply – a critical material used in South Africa’s agriculture, mining and chemical markets,” acting TFR chief executive Russell Baatjies said.

TFR and Transnet Engineering (TE), which will execute the Sasol ammonia fleet’s maintenance and repair work, expect additional revenue from anticipated increased haul volume and the Sasol-funded maintenance and repair work.

Sasol Chemicals produces and sells more than 540 000 tonnes of ammonia annually. The product is used to make a variety of fertilisers and industrial chemicals for the agriculture, mining, textile, and metalworking industries.