Improved infrastructure bumps up rail efficiency

The Swaziland branch of MSC Logistics, which handles its logistical requirements from the Matsapha Dry Port, relies on rail service to bring the ocean-going freight to local customers, and manufactured exports to the port of Durban.
“Spoornet needs to work closer with Swazi rail users to expedite container traffic at Durban,” said Tony Viegas, company general manager.
Although Swaziland railway’s scheduled service is reliable, container cars often do not make it to the port of Durban, but stop at King’s Rest, a holding area. More efficient logistics would end port bottlenecks and costly delays.
Garment companies, which are important customers, would prefer to use rail, which is efficient and predictable when it works.
“Because railways are a state carrier, there is no VAT to pay,” said Viegas. South Africa is set to increase VAT on goods in transit on non-state carriers, which will add millions of rands to the cost of doing business in Swaziland for garment makers that have become the backbone of the country’s manufacturing and export sectors, thanks to Agoa. Textile firms account for 5000 containers a year, which is big volume.
“Swaziland has improved its rail infrastructure. The dry port is upgraded, and we are achieving greater efficiency locally. There will continue to be cost advantages to using rail,” said Viegas.