Petredec, Transnet to unveil LPG intermodal hub

LPG value chain company, Petredec, and South Africa’s state-owned logistics infrastructure company, Transnet, has announced a rail freight solution

This project features a dedicated train system, modern LPG intermodal hub and storage facility at Sentrarand in Gauteng. The hub will receive bulk LPG via rail from the initial load point at the Richards Bay LPG terminal in KwaZulu-Natal, developed in partnership with Bidvest Tank Terminals in 2020.

Petredec will introduce South Africa’s first scheduled LPG train system, with each 75-wagon trainset capable of transporting over 2,500t of LPG. Initially operating up to three times per week, this enhanced logistics system will further improve the efficiency, cost-effectiveness and environmental friendliness of LPG distribution in the country.

“The strategic partnership between Petredec and Transnet Freight Rail marks a significant step in improving LPG accessibility in South Africa. This investment reflects our commitment to developing key LPG infrastructure and implementing more efficient, optimised logistical solutions - ultimately making LPG more affordable to end users. Our goal is clear: to make clean cooking solutions like LPG more accessible to those who need it, thus contributing to a broader vision of improved energy security, public health, energy affordability and environmental conservation in South Africa and beyond,” said Jonathan Fancher, CEO of Petredec.

Michelle Phillips, Transnet group chief executive, said, “This landmark project marks a major advancement in the supply of LPG across the country, enabling bulk distribution of LPG on a scale never before achieved in Africa. The Sentrarand LPG hub and rail freight solution is critical infrastructure that will support South Africa’s long-term energy security and developmental ambitions.”

Project engineering and construction will be undertaken by long-standing technical partner Lloyd Jones Construction with the intended commissioning of the Sentrarand facility and operation of first trains commencing in 1H 2028.