Citrus industry gets commitment for upgraded rail facilities

The handing over of a memorandum of understanding last week signed by Limpopo Transport MEC Pinky Kekana and Transnet Freight Rail to the Citrus Growers’ Association marks a key step on the road to revitalising rail transport in the region. And if the department rises to the challenge, upgraded rail facilities could be on track in time for the 2012 season. Citrus supply chain issues facing the Limpopo growers took centre stage at the meeting which ended with a reassuring message from the MEC. She committed her department to immediate action on the issues raised – and these included addressing road deterioration, mediating the transfer of Tzaneen rail operations to Letsitele, and addressing rail prices, equipment and service issues. The MEC proposed a return visit to Letsitele in the near future, along with Transnet Freight Rail CE Siyabonga Gama, to assess the requirements. The CGA’s Mitchell Brooke meantime provided compelling reasons for speedy action by TFR. “If eight container trains were to operate from Limpopo every week, this would save the region R18.2m in logistics costs per annum,” he told FTW. “Moreover, it would reduce 3 800 truck trips on the northern corridors and save 3.8m citrus truck kms a year.” Currently, he said, the rail price was uncompetitive. It must reduce to R500 per pallet or R12 000 per wagon. “The Limpopo and Zimbabwe region produce 30% of southern Africa’s citrus production but spend a staggering 70% (R360 million) of the R510 million spent on transport by the industry annually.”