Johannesburg,South Africa

Transnet Freight Rail,a subsidiary of Transnet a South African stated-owned logistics infrastructure company has entered into agreement with Petredec with aim to boost LPG distribution in South Africa.

These two entities agreed to work together in a landmark project which features a dedicated train system,modern LPG intermodal hub and storage facility at Sentrarand in Gauteng.

That agreement has viewed as a significant milestone and a good investment opportunity which would help to revive the country's energy infrastructure.

According to statement issued by these companies,the new LPG hub at Sentrarand,Benoni will serve as a much-needed staging post for South Africa's economic heartland and the broader SADC region.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.Through the project,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."

The project engineering and construction of Sentrarand hub will be handled by Petredec's long-standing technical partner Lloyd Jones Construction and that facility will start its operations in the first quarter of 2028.

Petredec was founded more than 40 years ago and over the years became a specialist when it comes to LPG shipping,trading,land-based wholesale and terminal operating.

For past decade,Petredec's Downstream division has focused on the development of LPG infrastructure around the Indian Ocean,it has been involved in massive projects in countries such as Mauritius,South Africa and right now is busy in India is building largest terminal in Krishnapatnam.

Petredec South Africa is a subsidiary of Petredec Group which is based in Singapore and operates two subsidiary companies,Petrefuel and Petregaz,which distribute products in the liquid fuels and LPG sectors.