At present the MIT can handle up to 3 million tons of cargo per annum, both bulk and containerised. This annual capacity can be increased to some 8 million tons with a relatively low capital investment.
We have already secured funding in excess of R180m from the Industrial Development Corporation of South Africa (IDC) for the planned growth.
Besides providing strategic guidance in terms of developing inter-regional trade, the IDC has made significant investments in mining ventures located along the North-South Corridor stretching from the DRC to Durban, and in promoting the Musina Makhado SEZ.
While focused on ensuring the most appropriate transport mode is utilised for the specific cargo types from origin to destination, we at the MIT aim to migrate cargo flows from road to rail, where commercially sustainable.
The MIT complex comprises four designated areas, i.e. the Musina station property, a concrete pad, a covered warehouse and a hardstand facility. All four areas are interlinked with rail lines, connected to South Africa’s Transnet Freight Rail (TFR) main line.
In striving to deliver both innovative and comprehensive value-adding solutions to clients, we have successfully managed to have the facility classified as a Special Storage Warehouse, i.e. a bonded store.
With Transnet as a key partner in developing the MIT, the capability and capacity exist to efficiently trans-ship cargo from one mode to another, with a short-term target of handling approximately 2.1 million tons of cargo per year onto rail.
In line with Transnet’s market demand strategy (MDS), its Transnet Freight Rail division (TFR) is actively working with terminal operators and partners, in this instance the MIT, to design appropriate rail and intermodal solutions to migrate road volumes to rail. Moreover, TFR property is being incorporated in the MIT complex under a lease agreement.
Important to note is that the Barberry Group, an established materials handling and rail logistics management company and a major shareholder in the MIT, supports the MIT management in its close working relationship with TFR to extract efficiencies from the rail system and thereby lower the costs of logistics.
In addition, two other established Musina-based businesses, Lionshare Holdings, and Musina Associated Carriers, a transport and logistics company, are key stakeholders and promotors of the MIT, all closely aligned with the SEZ’s strategic objectives of boosting the entire Southern African region’s industrialisation and manufacturing capacity.
This is to be achieved through accelerated economic growth, development, increased domestic and foreign direct investment, value-added exports, job creation and building regional industrial hubs.