Transnet Freight Rail (TFR) stated on Wednesday that the new measure would be introduced due to the severe challenges faced by the export coal line, including locomotive issues, historical underinvestment in rail network infrastructure and significant theft and vandalism.
"Nevertheless, TFR is determined to respond to these challenges and has undertaken decisive interventions," a TFR statement said.
Despite recent challenges, TFR said they are on track to surpass the performance achieved last year on the line to the Port of Richards Bay, thanks to a range of initiatives that involve partnerships with the private sector and the industry as a whole.
"The performance management of the outcomes-based contract differs in that it includes penalties for below-standard performance,” TFR said.
“Incentives will only be provided if the agreed-upon performance targets are met or exceeded.”
As part of its coal customer collaboration initiative, TFR is funding security measures, resulting in the addition of 86 additional security task teams and 35 drones along the rail line to ensure its security.
"Since the implementation of security interventions funded by coal customers, there has been a 34% reduction in security-related incidents per week on the coal line,” TFR said.
“However, it is important to note that the coal line continues to face challenges due to cable theft at critical bypasses, which impacts train movements. We remain committed to addressing these challenges on the export coal line.”
TFR also mentioned that the process of returning long-standing locomotives to service is in its final stages.
"We are also engaging with other original equipment manufacturers to expedite the return of their locomotives to service, while negotiations with CRRC E-loco continue at the government level.”
The reduced availability of locomotives is estimated to result in a loss of approximately 16 million tons of volume capacity per year for TFR.
