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.”