South Africa's Transnet SOC Ltd. inked a deal with Swaziland Rail to build a rail network that will link the two countries, Bloomberg reported.
Brian Molefe, CEO of the state-run Transnet, said that the railway will operate in three years, and will add capacity of 15 million metric tons annually to Richards Bay. The 140km line will run between the coal-producing province of Mpumalanga and the Richards Bay Coal Terminal to the east, cutting through landlocked Swaziland.
Last month, Transnet said it plans to boost coal deliveries to the Richards Bay terminal by 17 percent to 74 million tons in this year. Molefe said in October that the railway, which will cost USD1.5 billion, will enable Transnet to remove general freight from the Richards Bay coal line and boost shipments to the terminal to 95 million tons a year in the next five to six years.
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