Sasol to fund TFR’s maintenance of 128 ammonia tankers
TFR acting CEO Russell Baatjies and Sasol CEO Fleetwood Grobler sign the agreement, alongside their respective teams
JSE-listed Sasol has signed a five-year public-private partnership (PPP) agreement with Transnet Freight Rail (TFR), under which the energy and chemicals group will fund the maintenance and repair of a dedicated fleet of 128 ammonia tankers that service Sasol’s Secunda and Sasolburg facilities.
Sasol base chemicals VP David Mokomela described the agreement as a first-of-its kind and said it would secure the transport capacity and reliability needed to supply the market.
Ahead of the deal, CEO Fleetwood Grobler told shareholders that the performance of both Transnet and Eskom had weighed heavily on the group’s performance in the interim period to the end of December, noting that the sales from its chemicals unit had been constrained by “persisting supply-chain challenges in South Africa”.
Sasol Chemicals produces and sells more than 540 000 t/y of ammonia, which is used to make a variety of fertilisers and industrial chemicals for the agriculture, mining, textile, and metalworking industries.
AECI, which is a large customer and uses the ammonia to produce explosives, welcomed the announcement of the PPP, which it said should help improve the reliability of deliveries between Secunda and its Modderfontein facility, in Gauteng.
However, AECI would continue to pursue a hybrid sourcing strategy, including imports through the Port of Richards Bay, to diversify its sources of ammonia supply.
Acting TFR CEO Russell Baatjies expressed appreciation for Sasol’s support and described the agreement as a “significant step toward addressing the industry’s current capacity challenges and protecting the ammonia rail supply”.
TFR and Transnet Engineering, the unit appointed to execute the Sasol ammonia fleet’s maintenance and repair work, expected additional revenue generation from anticipated increased haul volumes and the Sasol-funded maintenance and repair work.
Comments
Research Reports
Projects
Latest News
Showroom
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
