Private sector continues to erode Transnet business

Ed Richardson TRANSNET IS losing freight business to private operators. According to Statistics South Africa, the volume of goods transported by private operators increased by 6.1% in the three months up to October 2002. Transnet, in contrast, saw a 1.3% decrease in business. According to the StatsSA figures, Transnet has seen a steady decline in market share since 1996. The total volume of goods transported during the three months ended October 2002 increased by 4,1% (+7,3 million tons), according to the latest report. The seasonally adjusted total volume of goods transported during the three months ended October 2002 increased by 3% compared with the previous three months. The seasonally adjusted total volume of goods transported by private sector enterprises increased by 4,2% during this period while the seasonally adjusted total volume of goods transported by Transnet Ltd is at the same level as the previous three months. The total volume of goods transported from January 2002 to October 2002 increased by 1,0% (+5,4 million tons) compared with the period January 2001 to October 2001. This increase was due to an increase of 2,3% (+9,2 million tons) in the total volume of goods transported by private sector enterprises. However, this increase was partially counteracted by a decrease of 2,4% (-3,8 million tons) in the total volume of goods transported by Transnet Ltd during this period, according to StatsSA. The total distance travelled by private sector enterprises during October 2002 increased by 3,4% (+6,3 million kilometres) compared with October 2001. Private hauliers are also seeing healthier bottom lines. The total gross transport income of private sector enterprises during October 2002 increased by 17,2% (+R182,5 million) compared with October 2001. This is, in part, due to better utilisation of the commercial fleets. The total number of operating days on which vehicles stood idle dropped from 26 646 in October 2001 to 26 067 in October last year. The biggest volumes came from mining and quarrying products, followed by coke, petroleum and plastics and then livestock, fresh produce and crops.