September 10, 2024 [Tank Terminals Magazine]- Petredec, a leading company in the LPG value chain, and South Africa’s state-owned logistics infrastructure company, Transnet, have announced a groundbreaking rail freight solution that aims to revolutionise LPG distribution in South Africa. The project, featuring a dedicated train system, a modern LPG intermodal hub, and a storage facility at Sentrarand in Gauteng, represents a significant milestone and investment in the country’s energy infrastructure, addressing the growing demand for LPG in the coming decades.
The new LPG hub at Sentrarand, Benoni, will serve as a crucial staging post for South Africa’s economic heartland and the broader SADC region. The hub will receive bulk LPG via rail from the Richards Bay LPG terminal in KwaZulu-Natal, which was 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 2,500 tonnes of LPG. Initially operating up to three times per week, this enhanced logistics system will improve the efficiency, cost-effectiveness, and environmental sustainability of LPG distribution in the country.
Jonathan Fancher, CEO of Petredec, highlighted the significance of the partnership: “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.”
Michelle Phillips, Transnet group chief executive, added, “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.”
The Sentrarand LPG rail intermodal hub is the latest investment by Petredec, underscoring the company’s commitment to providing cleaner energy to those who need it most. This initiative is particularly significant in sub-Saharan Africa, where, according to the International Energy Agency, one billion people still rely on solid biomass and kerosene for cooking, disproportionately impacting women and girls. Investments in LPG infrastructure can significantly enhance the affordability and accessibility of clean cooking solutions, delivering substantial health, developmental, and environmental benefits to the region.
The project’s engineering and construction will be managed by long-standing technical partner Lloyd Jones Construction, with the Sentrarand facility expected to be commissioned and the first trains set to commence operations in the first half of 2028.
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