Home
FacebookSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Categories
    • Categories
    • Africa
    • Air Freight
    • BEE
    • Border Beat
    • COVID-19
    • Crime
    • Customs
    • Domestic
    • Duty Calls
    • Economy
    • Employment
    • Energy/Fuel
    • Events
    • Freight & Trading Weekly
    • Imports and Exports
    • Infrastructure
    • International
    • Logistics
    • Other
    • People
    • Road/Rail Freight
    • Sea Freight
    • Skills & Training
    • Social Development
    • Sustainability
    • Technology
    • Trade/Investment
    • Webinars
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines
Logistics
Road/Rail Freight

Green shoots appear after ‘Great Train Robbery’

27 Nov 2024 - by Staff reporter
Prof Jan Havenga, emeritus professor of logistics at Stellenbosch University. 
0 Comments

Share

  • Facebook
  • Google+
  • LinkedIn
  • E-mail
  • Print

Rail freight volumes have started to buck its downward trend since a number of key Transnet appointments in the latter part of 2023.

This is according to an analysis by Prof. Jan Havenga, emeritus professor of logistics at Stellenbosch University and logistics advisor to government and the World Bank.

Based on monthly cargo volumes, the continuous downard trend apparent since 2017 started shifting as of July last year, indicating that freight volumes are stabilising.

Havenga said TFR management “have stabilised [freight volume performance] and they’ve done this with great effort”.

“Russell (Baatjies, CEO of Transnet Freight Rail since March) knows how to run a railway, but he has no investment; there is no money coming in,” Havenga told members of Exporters Western Cape at its final function for 2024.

Allowing private operators on the country’s rail network is crucial to remedy this problem, and Havenga expects the new network statement, setting out the tariffs for private participation on the rail network, to still be published this year.

The initial network statement, published in March, was widely criticised for unrealistically high tariffs, but Havenga said there has been extensive public consultation all year, and he is confident that the new tariffs will be far more realistic.

Nonetheless, he expects that for the first two to three years, a maximum of 5% of rail freight in the country will be moved by private trains, meaning TFR “will still have to do the heavy lifting”.

Havenga shared some of his own history with the utility, and pointed out that the systematic destruction of the country’s rail network, what he calls South Africa’s own ‘Great Train Robbery’, started decades before State Capture.

He said general freight rail in the  country has been neglected since 1976, when rail managers started devoting all their attention to the lucrative coal and iron ore rail corridors. They also did not want to work with emerging logistics providers at the time, but wanted to do everything themselves. They also failed to effectively insert general freight rail into national supply chains, which caused a decline in general freight rail volumes.

Over time, income losses from these operations were cross-subsidised from more lucrative parts of the business. This unhealthy practice continued after the establishment of Transnet, where the utility overcharged on services where it had a monopoly, such as rail coal tariffs and port levies, to plug deficits in the business.

Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

SA in bid to ban port worker strikes

Logistics

The Department of Labour has issued a directive to classify port and border employees as essential services.

1 hour ago
0 Comments

South African vehicle exports surge 7.9%

Imports and Exports

The automotive sector continues to play a vital role in the country’s manufacturing economy.

2 hours ago
0 Comments

Minerals Council rejects chrome export tax

Imports and Exports

The industry body warns that the duty will negatively affect chrome producers and jobs.

Today 12:00
0 Comments

Comprehensive steel duties gazetted

Imports and Exports

Goods originating in or imported from numerous developing countries are excluded.

Today 11:45
0 Comments

New regulation delays exports going to Lesotho

Logistics

RSL has said non-compliance is the primary reason for hold-ups at its ports of entry.

Today 11:45
0 Comments

New oil SOE secures 90% stake in Sudanese prospecting block

Energy/Fuel
Logistics

The block apparently contains reserves of up to 3.5 billion barrels of oil.

Today 11:45
0 Comments

Mining industry has bright future – Mantashe

Domestic
Economy
Trade/Investment

The minister believes it is a sunrise sector filled with new mineral opportunities for investors and the economy.

Today 09:30
0 Comments

Deployment of new RTGs at PoCT speeded up

Logistics

A general cargo vessel carrying a second batch of new RTGs is expected imminently.

Yesterday
0 Comments

ULCV successfully docks at Ngqura, makes history

Logistics
Sea Freight

“This achievement solidifies our status as a significant player in the maritime industry.” – TNPA

Yesterday
0 Comments

Trump tariffs – July 9 deadline draws nearer

Imports and Exports
Trade/Investment

One of the countries that has already learned its fate in the face of punishing duties is Vietnam.

Yesterday
0 Comments

Fuel price hikes a strain for consumers

Energy/Fuel

Double-digit price increases and a higher fuel levy will place financial pressure on households.

Yesterday
0 Comments

Pork for citrus? South Africa faces tough US trade choice

Imports and Exports

If SA’s disease-free status is compromised, PRRS could come at a heavy cost to local pork producers.

Yesterday
0 Comments
  • More

FeatureClick to view

Cold Chain Logistics 4 July 2025

Border Beat

Forum tightens net against border corruption
25 Jun 2025
Police clamp down on cross-border crime
17 Jun 2025
Zim's anti-smuggling measures delay legitimate freight operations
06 Jun 2025
More

Poll

Has South Africa's ports turned the corner?

Featured Jobs

Business Development Executive

Switch Recruit
Eastrand
02 Jul

Road Logistics Pricing Specialist

Tiger Recruitment
East Rand
02 Jul

Operations Manager

Lee Botti & Associates
Cape Town
02 Jul
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us