Transnet, Petredec pact to “transform LPG distribution in South Africa”

Transnet Freight Rail has signed an agreement with internationally recognised Liquified Petroleum Gas (LPG) giant, Petredec, to enhance gas distribution in the country. In a joint statement, the two companies said the move is a 'groundbreaking rail freight solution that is set to transform LPG distribution in South Africa'. 'This landmark project, featuring a dedicated train system, modern LPG intermodal hub and storage facility at Sentrarand in Gauteng, marks a significant milestone and investment in the country's energy infrastructure, which is needed to meet the growing demand for LPG over the coming decades. 'The new LPG hub… will serve as a much-needed staging post for South Africa's economic heartland and the broader SADC region. The hub will receive bulk LPG via rail from the initial load point at the Richards Bay LPG terminal in KwaZulu-Natal, developed in partnership with Bidvest Tank Terminals in 2020. 'Through the project, Petredec will introduce South Africa's first scheduled LPG train system , with each 75-wagon trainset capable of transporting over 2 500t of LPG. Initially operating up to three times per week, this enhanced logistics system will further improve the efficiency, cost-effectiveness and environmental friendliness of LPG distribution in the country,' the statement read. Transnet Group Chief Executive, Michelle Phillips, said the hub is critical to protecting South Africa's energy security. '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. The Sentrarand LPG hub and rail freight solution is critical infrastructure that will support South Africa's long-term energy security and developmental ambitions,' Phillips said. Jonathan Fancher, CEO of Petredec, said the partnership between the two companies marks a 'significant step in improving LPG accessibility in South Africa'. 'This investment reflects our commitment to developing key LPG infrastructure and implementing m ore efficient, optimised 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,' Fancher said. Source: South African Government News Agency