South Africa’s state-owned freight and logistics company, Transnet, has completed a R4 billion ($246 million) infrastructure upgrade at the Saldanha Iron Ore Terminal, a key export gateway for the country’s mining sector.

The investment comes as South Africa seeks to improve logistics efficiency and lift export capacity after years of rail and port bottlenecks that have weighed on miners and bulk commodity producers.

Located on the country’s west coast, the Saldanha facility is Africa’s largest iron ore export terminal and handles most of South Africa’s seaborne iron ore shipments. The terminal has become a critical link between inland mines and steelmakers in Europe, Asia and other global markets.

Transnet said the project is centered on the installation of a new heavy-duty tippler, a machine that rapidly unloads iron ore from rail wagons.

The company expects the equipment to improve cargo-handling efficiency and support higher throughput volumes along the export corridor.

Major upgrade at a strategic export hub

The completion of the project coincides with the terminal’s 50th anniversary, highlighting the long-running role the facility has played in South Africa’s mining and export economy.

Since the first iron ore shipment left Saldanha in 1976, the terminal has exported an estimated 1.3 billion tonnes of iron ore.

According to Transnet Port Terminals, the operator of the facility, the upgrade forms part of a broader program to modernize cargo-handling infrastructure across its network of 15 terminals.

Rail, power and environmental infrastructure added

Beyond the tippler installation, the project included a new Eskom substation, a 1.7-kilometer conveyor system, heavy-haul rail infrastructure, road bridges, conveyor tunnels, gantry cranes and dust-management technology aimed at reducing the environmental impact of iron ore operations.

Transnet Port Terminals CEO Jabu Mdaki said the company is marking the terminal’s 50-year milestone while completing one of the largest infrastructure investments undertaken at the site.

He said the project is intended to strengthen the export corridor for the long term.

Commissioning under way, jobs supported during construction

Testing and commissioning activities have begun, with the new tippler expected to be fully operational by September.

Mdaki said the project achieved an estimated 45 percent local-content contribution across multiple work packages.

He added that construction supported about 1,500 jobs at peak activity. Today, the Saldanha terminal handles roughly 96 percent of South Africa’s iron ore exports, reinforcing its role as a strategic national asset for mining investment, trade and economic growth.