Lack of consultation on rates angers rail forum

‘Take it or leave it attitude’ disappoints ALAN PEAT SPOORNET HAS failed to live up to promises made to major industry user body, the Container Rail Operators’ Forum (Crof), according to forum chairman Peter Lewin. This latest lack of communication from the parastatal relates to the new rates due from April 1 – which were suddenly imposed without any of the promised pre-negotiation, or any advance notice to the forum. “It has again been a disappointing move made by Spoornet where they have sent notification directly to Crof members,” he told FTW. “The unfortunate thing is that, once again, Crof has had to hear about this increase from its members rather than from Spoornet.” This is in contradiction to the original high-level agreements made between the forum and Spoornet senior management – including railways CE Siyabonga Gama and Maria Ramos, CE of parent body Transnet. “From the outset,” said Lewin, “we were promised that Spoornet would apply a more transparent policy and focus on the principle of “collaboration” with industry - in particular, with industry representative bodies such as Crof.” This was also emphasised by Ramos at a meeting last year, he added, which was attended by all major rail clients from both the intermodal and breakbulk sectors. This is one of numerous contradictory cases experienced by the forum since its inception. “The most recent case,” said Lewin, “being a rail rate increase of 1% in October last year. “When the matter was addressed with Spoornet management, Crof was promised that this would not happen again. “The current advice to our members regarding the rate increase from April 1 is a clear indication that Spoornet has no intention of showing any form of transparency. It’s the old case of “here it is – take it or leave it”, without any constructive negotiation with major users before they increase the rates.” According to the bland circular released by Spoornet, the increases they will be implementing from April 1 are: Empty containers, up by 6%; light containers by 8%; and heavy containers, 7%. An exception is with the railing of light containers between Port Elizabeth and City Deep/Pretcon, where this category will experience a rate increase of 9%. They have also advised that miscellaneous charges will be increased on average by 8%. “Where Spoornet have continually suggested that they are on a drive to attract more traffic back to rail from road transport,” said Lewin, “they are not allowing the private sector to build sufficient confidence in their service and policies by excluding their major clients from any discussions prior to the setting of new rates. “The opposite is bound to happen, where industry will continue to move traffic to road - as the dictatorial manner in which rates are adjusted and the unrealistic levels that they are adjusted to drive clients away from rail.”