Transnet Snubs Kumba’s Overture to Run Lucrative South African Iron Ore Rail Line
- Kumba CEO wants to lease or operate South African rail link
- Inadequate maintenance, locust swarms curtail line capacity
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South Africa’s state-owned logistics company has rejected an overture from an Anglo American Plc unit to take over the running of its iron ore rail line, which is one of its most profitable but battles to move sufficient volumes.
Kumba Iron Ore Ltd. wants to lease the line from Transnet SOC Ltd. or run it on a concession basis, and would invest in boosting its capacity and make it more efficient, according to Mpumi Zikalala, Kumba’s chief executive officer. While she wants to discuss the matter with the government, her Transnet counterpart Portia Derby isn’t interested.