Rail has the potential to reduce the costs of doing business in the Eastern Cape, according to Cleopatra Shiceka, general manager of Transnet Freight Rail. Earlier this year she said that transport contributed 61% to the total logistics costs of businesses in 2011. The next biggest contributor is warehousing at 15%. Of this, rail contributes around 11% to transport costs, while carrying 14% of annual freight tonnage, or 35% of ton kilometres. The key commodities identified for the Eastern Cape rail corridors are manganese, vehicles, automotive components and agricultural products. Rail investments in the province will see the line between the Northern Cape and Ngqura upgraded to handle 16 million tons of manganese a year; and upgrading of the line between East London and the Elitheni coal mine near Queenstown. Lines to be “reinstated” include Klipplaat to the west and Sterkstroom-Maclear in the eastern half of the province, as well as the Mthatha Amabele branch line.
