Inferior logistics threatens mining industry success

Mining is a key export earner for South Africa but the earning potential will come to naught if free freight movement is impaired. “The National Development Plan (NDP) – of which Transnet’s Market Demand Strategy (MDS) is a key component – offers the solution and it is time for all South African trade stakeholders to rally behind the plan and make it happen,” said Michael Teke president of the Chamber of Mines South Africa. He said that ‘South Africa Incorporated’ was in crisis, despite its abundance of resources and high-demand commodities. “It must succeed. And for that to happen, the country needs a worldclass infrastructure and logistics strategy to ensure its export commodities reach their global target markets in time and at a competitive price,” said Teke. He noted that South Africa could meet a lot of the world’s energy needs through its coal production and that it was endowed with 74% of the world’s platinum reserves, 30% of its manganese reserves and 62% of the globe’s cobalt reserves – to name a few. “It’s time for us all to stop discussing challenges and formulating plans and take action. We have a plan. It is the NDP. And it is critical that we support it and ensure its implementation.” Teke said that there were three bulk export commodities – coal, iron ore and manganese – that could meet a huge global demand but they depended on the operational efficiency of rail to get to the markets quickly. “The success of the MDS is critical to being able to export these commodities,” he said, adding that Transnet’s next challenge with the MDS would be to ensure the mining industry was globally competitive in meeting export demands. INSERT & CAPTION Mining’s export potential can be made, or broken, by transport. – Michael Teke