Transnet Partners With Petredec To Enhance LPG Distribution In South Africa

Transnet Freight Rail signed a deal with the global LPG company Petredec on Thursday to improve gas distribution in South Africa.

This collaboration is a "groundbreaking rail freight solution that is set to transform LPG distribution in South Africa," as per the joint statement issued by both companies, SA News reported.

The project includes a dedicated train system, a modern LPG hub, and a storage facility at Sentrarand in Gauteng. This investment aims to boost South Africa's energy infrastructure to meet the increasing demand for LPG in the future.

The new LPG hub will be a crucial point for South Africa's economy and the broader SADC region. It will handle bulk LPG delivered by rail from the Richards Bay LPG terminal in KwaZulu-Natal, which was developed with Bidvest Tank Terminals in 2020.

Petredec will launch South Africa's first scheduled LPG train system with this project. Each train, consisting of 75 wagons, can carry over 2,500 tons of LPG. Initially, the trains will run up to three times a week, improving the efficiency, cost-effectiveness, and environmental impact of LPG distribution in the country.

Transnet Group Chief Executive Michelle Phillips said this "landmark project marks a major advancement in the supply of LPG across the country, enabling bulk distribution of LPG on a scale never before achieved in Africa."

He added, "The Sentrarand LPG hub and rail freight solution is critical infrastructure that will support South Africa's long-term energy security and developmental ambitions."

CEO of Petredec Jonathan Fancher explained that this investment reflects the company's commitment to developing key LPG infrastructure and implementing more efficient, optimized logistical solutions - ultimately making LPG more affordable to end users.

"Our goal is clear: to make clean cooking solutions like LPG more accessible to those who need it, thus contributing to a broader vision of improved energy security, public health, energy affordability and environmental conservation in South Africa and beyond," he added.

Earlier this year, the South African government relieved the motorists as the Department of Mineral Resources and Energy (DMRE) announced cuts in petrol and diesel prices due to lower international oil prices. However, higher freight costs weighed on liquefied petroleum gas (LPG) prices.