Call for a shake-up of rail tariff structures

Delivery and price will determine intermodal success ALAN PEAT As one of the cogs in a complex logistics chain, the inland haulage operator suffers the ripple effect of problems beyond his control. Keeping ahead of the game is what distinguishes the industry leaders from the rest. FTW takes a closer look. CO-OPERATION NOT competition between the road and rail modes. That’s the only way to achieve a cost-efficient transport system in the southern African region, according to Royston Denysschen, commercial services executive at Manica Africa - the SA major in regional logistics. “By their design,” he told FTW, “road and rail are complementary rather than competitive services.” Road he sees as proficient in delivering just in-time (JIT) type shipments. Rail, on the other hand, operates at its most efficient in high volume, depot-to-depot cargo movement. “Rail should not compete with road,” said Denysschen, “but should focus on what it is supposed to deliver. “There will always be a place for both, but this balance can only be achieved when service delivery and price come into line.” In this respect, the entire tariff structure of the regional rail operations should be adjusted to fit what is seen as the comparative global norms. “If rail is looking to road as a benchmark,” said Denysschen, “it would do better to look at international service providers for a benchmark - in terms of measurable service delivery (transit times) and cost (per ton per km).” There should also be a motivation to generate business growth in the regions flanking the main rail lines - with the United Nations and Nepad supported “corridor” concept a vital part of this development. “Rail should collaborate with corridor stakeholders to work together to reduce cost of supply,” Denysschen said, “in order to attract trade through the corridor.” Manica Africa’s views result from experience in the market and dealings with road and rail transactions that integrate its massive rail- compatible warehousing and handling infrastructure throughout the region.