Transnet Freight Rail Partners with Petredec to Improve Gas Distribution

The new LPG hub will serve as a vital staging post for South Africa's economic hub and the broader Southern African Development Community (SADC) region.

Transnet Freight Rail has entered into a strategic partnership with internationally renowned Liquified Petroleum Gas (LPG) company, Petredec, to significantly improve gas distribution across South Africa. This collaboration is set to introduce a groundbreaking rail freight solution that will transform the landscape of LPG transportation in the country.

In a joint statement, both companies described the project as a major milestone in South Africa’s energy infrastructure. The initiative includes the development of a dedicated train system, a state-of-the-art LPG intermodal hub, and a storage facility located at Sentrarand in Gauteng. This hub is expected to play a key role in meeting the increasing demand for LPG in the coming decades.

The new LPG hub will serve as a vital staging post for South Africa's economic hub and the broader Southern African Development Community (SADC) region. Bulk LPG will be transported via rail from the Richards Bay LPG terminal in KwaZulu-Natal, which was developed in collaboration with Bidvest Tank Terminals in 2020.

As part of this project, Petredec will introduce South Africa’s first scheduled LPG train system. Each 75-wagon train will be capable of transporting over 2,500 tons of LPG, operating up to three times per week. This new logistics system aims to enhance the efficiency, cost-effectiveness, and environmental sustainability of LPG distribution across the country.

Transnet Group Chief Executive, Michelle Phillips, highlighted the importance of the hub in safeguarding South Africa’s energy security. "This project represents a major advancement in the bulk distribution of LPG, enabling a scale of distribution never before seen in Africa. The Sentrarand hub and rail solution will be crucial for supporting South Africa’s long-term energy security and development goals," she said.

Petredec CEO, Jonathan Fancher, emphasized that this partnership marks a significant step toward improving LPG accessibility in South Africa. "Our investment in LPG infrastructure and optimized logistics will ultimately make clean cooking solutions like LPG more affordable and accessible, contributing to improved energy security, public health, affordability, and environmental conservation," Fancher added.

The new rail system and hub are expected to significantly bolster LPG distribution, ensuring cleaner energy solutions for South Africa and the surrounding regions.