[ferro-alloys.com]

  Merafe and Glencore's ferrochrome export business in South Africa has encountered major problems - the utilization rate of the railway and port facilities managed by Transnet, the South African state-owned transport company, is sometimes as low as 40%.

  The logistics backlog has become a top priority for Glencore merafe chrome venture this fiscal year, according to japie Fullard, chief executive of Glencore alloy. "We have been in discussions with Portia Derby, the chief executive of Transnet, in the hope of working together to solve the logistics problem," he said Transnet said it was taking measures to improve railway utilization, especially the section between Mpumalanga and KwaZulu Natal provinces. The section was damaged by tropical cyclone Eloise in February. Glencore said that the extremely low utilization rate of railway and port facilities made it difficult to export ferrochrome. Another long-standing problem is frequent theft. "Theft is a serious problem," Vlad said. There are often cases of goods lost.

  In addition to ferrochrome producers, south32, which produces and exports coal and manganese in South Africa, also said in February that its sales would be affected if Transnet did not perform well. Mike Fraser, chief operating officer of south32, said of delays caused by logistics infrastructure problems, "if this abnormal state lasts longer, we will suffer more pressure.

  Transnet is the largest state-owned transportation company in South Africa. It has the right to manage ports, railways and pipelines. It is the largest and most critical link in South Africa's freight logistics chain.

  Glencore merafe chrome venture is a joint venture between Glencore and melafe. Melafe shares 20.5% and Glencore shares 79.5%.

• [Editor:Catherine Ren]