South Africa’s Transnet and Petredec, a Singapore – based fully integrated LPG operator, signed an agreement to develop a new LPG rail intermodal hub at Sentrarand in Benoni, in Gauteng province.
The project is South Africa’s first LPG intermodal facility dedicated to rail freight transport, which is expected to transform LPG distribution in South Africa.
Project Engineering and Construction will be undertaken by long-standing technical partner Lloyd Jones Construction with the intended commissioning of the Sentrarand facility and operation of first trains commencing in 2028.
The innovative project, featuring a dedicated train system, modern LPG intermodal hub and storage facility, 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 rail intermodal hub will serve as a much-needed staging post for South Africa’s economic heartland and the broader Southern African Development Community (SADC) region.
“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,” Michelle Phillips, Transnet Group Chief Executive, said.
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 2,500 tonnes 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 strategic partnership between Petredec and Transnet Freight Rail marks a significant step in improving LPG accessibility in South Africa. This investment reflects our commitment to developing key LPG infrastructure and implementing more efficient, optimised logistical solutions – ultimately making LPG more affordable to end users,” Jonathan Fancher, CEO of Petredec, said.
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