Transnet Freight Rail (TFR) has met with ArcelorMittal South Africa (AMSA) to address concerns raised by the steel producer regarding TFR’s impact on its business operations.
This forms part of TFR’s efforts to improve efficiencies and productivity, especially when freight issues are contributing to production or export issues for big employers in the country.
TFR says the engagements between itself and AMSA are a significant step towards finalising a number of outstanding matters and collaborating on initiatives that can unlock commercial value for both entities.
The steel industry is especially crucial in the reindustrialisation of South Africa and to the reconstruction of the economy after Covid-19.
TFR says it will continue to collaborate with key stakeholders and partners as part of fulfilling its mandate of reducing the cost of doing business, ensuring security of supply and enabling economic growth.
AMSA reported a R3.3-billion headline loss in 2019, owing to a downturn in world steel demand and pricing.
The producer is restructuring some of its assets, including winding down its Saldanha Works operation, in the Western Cape.