Transnet failures a risk to South Africa’s biggest company

Sasol – South Africa’s biggest company by revenue – said unabated rail snarl-ups hampered its chemical shipments, and pipeline disruptions slowed deliveries to its oil refinery, highlighting the deficiency of services provided by state logistics firm Transnet.

The company’s coal export sales remained flat in the three months through September due to “operational challenges” at the rail operator, while its 108,000 barrel-a-day Natref refinery took delivery of less crude than expected because the illegal tapping of a Transnet pipeline that supplies the plant led to eight outages.

A force majeure declared by Sasol last year on the local supply of ammonia remains in place due to a shortage of rail cars.

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Sasol: Transnet’s logistics failings a ‘risk to our business’Thungela Resources and Glencore have also complained that a lack of capacity on Transnet’s 20 000km freight rail network.
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