Southern African transport
ministers have committed
to re-evaluating their
governments’ policies on
exemption for railway operators
from the fuel levy which is
largely used to improve road
infrastructure.
Swaziland is the only country
that has waived the levy on fuel
used for locomotives.
The issue of exemption
was high on the agenda at
the fifth annual Southern
African Railway Association
(Sara) conference held in
Johannesburg last week with
one highlevel
delegate
remarking
to FTW
that it was
“encouraging
to see progress
on the issue
and a greater
understanding
of the need to
waive it”.
At the
first Sara
conference, held in Pemba
Mozambique in 2010‚ regional
transport ministers agreed to
exempt railway operators from
paying a levy on the fuel used
for locomotives.
Rail operators argue that
a large chunk of the fuel
levy is used to improve road
infrastructure‚
to the
detriment
of rail. “The
case has been
made – and
largely accepted
by the freight
fraternity at
large – for the
modal shift,
especially of
bulk cargo, to
rail. But it is
also well known
that rail development has been
neglected for far too long and
thus needs major investment to
get it up to standard,” said Sara
president, Dominic Ntwaagae.
During a ministerial panel
discussion – where South Africa
notably had no ministerial or
government representation
– transport ministers from
Zambia, Botswana and
Tanzania pointed out that they
were currently driving policy
with their governments to
not only ensure a modal shift
but to facilitate it. “And that
includes looking at ways to
raise money for funding and
save on operational costs,” said
Nelson Nyangu, director of
transport in Zambia’s ministry
of transport.
Tshenolo Mabeo, minister of
transport and communications
for Botswana, agreed,
adding: “Railways, once fully
operational, play a major role
in facilitating regional and
national trade as they provide
not only a safer but more
affordable option. Policy
makers need to look at
this bigger picture and
commit to the Pemba
2010 agreement.”
Minister of public
works and transport
for Swaziland, Lindiwe
Dlamini, said that
Swaziland waived
the fuel levy for rail
operators over ten
years ago, which
assisted Swaziland
Railway to
maintain its
infrastructure
and stock.
INSERT & CAPTION
A large chunk of
the fuel levy is used
to improve road
infrastructure‚ to the
detriment of rail.
– Tshenolo Mabeo
