Private sector logistics
companies are ready and
willing to help Transnet
speed up the government
drive to put more freight on
rail, and for the industry to
“green its footprint”, says
Shane Gerber, managing
director of BLG Logistics in
South Africa.
Logistics companies are
eager to switch to rail where
possible in order to reduce
costs and “green” the value
chain. But, he says, clients
expect their freight to arrive
on time – and that means
that the trains have to be
consistently on schedule.
Currently this is not the
case in South Africa.
“Countries like Germany
found that the answer was
to have a publicly owned,
but privately managed rail
system. There are private
companies willing to invest
in rolling stock, and to ‘rent
the rails’,” he says.
Two of South Africa’s
Brics partners have started
pursuing the German
model – or one based on the
public private partnership
approach.
China’s rail system was
designed and built around
the movement of people, and
BLG Logistics is assisting
the Chinese authorities to
introduce more freight.
“They understand the
need to green the logistics
chain, and that rail is the
way to go,” says Gerber.
Partnerships between
Chinese Rail authorities and
the private sector have seen
the development of one of
the longest freight routes in
the world. The
11 179-kilometre link starts
in Chongqing, which is
situated on the Yangtze
River in western China,
and traverses Kazakhstan,
Russia, Belarus and Poland
before terminating in
Duisburg, Germany.
Brazil is actively courting
private investment into its
logistical infrastructure
through public private
partnerships and direct
foreign investment.
BLG is among the
logistics companies that are
very active in the Brazilian
market.
The expertise which is
helping to green and reduce
costs in logistics chains in
countries such as Brazil,
China and Germany is
available to South Africa
through the global networks
of logistics companies based
locally, says Gerber.
“All we need is a
willingness from Transnet
and government to work
more closely with the
private sector. We have the
resources and expertise to
help South Africa and its
neighbours to create an
efficient rail infrastructure
at minimal cost to the
taxpayer,” he says.
CAPTION
All we need is a willingness from Transnet and government to work more
closely with the private sector.
