The national corridor (NatCor) railway line connecting Gauteng to Durban's port has practically come to a standstill over the past fortnight due to theft of power cables.
In the week ending 21st May, the container route from Durban's port to Johannesburg's City Deep station operated at a mere 25% capacity as the overhead power lines that power the trains were constantly severed. This was a decline from 36% capacity the previous week.
Spanning 740 kilometers, the dual rail line is vital for South Africa's trade, facilitating the transportation of vehicle parts and finished cars for companies like BMW and Ford. Additionally, it supplies iron ore to ArcelorMittal's Newcastle plant. Grain, coal, and timber are transported to Durban for export, while containerized goods are sent north to Johannesburg and onward to neighboring countries.
"We never anticipated that security would become the greatest risk," remarked Rudzani Ligege, the managing executive responsible for the corridor operated by Transnet Freight Rail, during an interview on Wednesday. "It's a nightmare."
Vandalism along the container route compounds the challenges faced by Transnet, which is already grappling with crime and a shortage of locomotive spare parts across its coal transportation network.
The crisis is compelling businesses reliant on the container line to depend on expensive trucks that traverse the congested N3 highway between Durban and Johannesburg. Shipments either miss their intended vessels or face demurrage charges for extended stays at the port. This impacts shippers such as Maersk and MSC, as noted by Ligege. Seven Seas Worldwide sent an email expressing apologies to customers for the resulting delays.
In the fiscal year ending on 31 March, 591 kilometers of cable, representing four-fifths of its total length, were stolen, according to Ligege. The incidence of power cable theft has surged almost eleven-fold since 2016.
"That's the severity of the problem," he emphasized.
Transnet, which operates Africa's largest rail network, lacks a dedicated security budget since it was established at a time when security concerns were not prominent. Consequently, all initiatives must be financed from operational expenses.
The company is contemplating the use of drones, night-vision equipment, and task forces to address the issue. Ligege stated that they have also appealed to the police to take action.
To mitigate the theft risk, Transnet is exploring the possibility of transitioning to diesel locomotives. However, this would entail expensive locomotive replacements and retrofitting of two lengthy tunnels to enhance ventilation, according to Ligege.
While such a change would increase the company's emissions, it would result in fewer diesel trucks on the Durban highway. Ligege explained that a train capable of carrying containers equivalent to 100 TEUs would replace 100 trucks, employing a commonly used measurement for container volumes.
Transnet has issued a tender for a private company to operate and maintain the rail corridor for a span of 20 years. However, the tender process is yet to conclude. – SOURCE: Bloomberg
