Private sector keen to engage with Transnet – survey

South Africa’s failing infrastructure remains a major concern for supply chain and logistics managers of big and small companies, according to the ninth annual Barloworld Logistics supplychainforesight survey. Discussing the survey, Johan Dekker, head of solution development at Barloworld Logistics, said not much change had been noted in the responses when compared to the 2010 survey. “The sensational and alarming extent of our road to rail freight imbalance was highlighted in last year’s study, but not much has changed this year. A similar tale of woe for the competitiveness of SA Inc emerged this year,” he said. With 60% of respondents expecting increases in their freight volumes this year, most said they would move this cargo by road due to a lack of confidence in rail. Only a 25% increase is expected in rail freight volumes. At least 80% of the respondents said they moved less than 10% of their freight by rail. “While there is general disenchantment, and even anger, among the private sector about their powerlessness to do anything to improve the quality of the country’s infrastructure, they are nevertheless willing to engage with government to find solutions.” Dekker said the one positive highlighted by the survey was that the private sector was, in fact, urgently wanting to engage with Transnet in an effort to find solutions for the parastatal to take care of intermodal infrastructure in rail and ports. “We found very low level engagement was currently taking place, along with a low level of understanding of Transnet’s partnership strategy, but there is evidence of apathy about taking corrective action.” At least 27% of respondents indicated they were not affected by Transnet’s shortcomings, while a significant finding was the lack of confidence in Transnet and its strategies. Dekker said with some R470 billion earmarked by government for road and rail infrastructure it was clear, judging by the survey, that definite programmes needed to be communicated to private business which agrees that there is a need for freight capacity on rail. “Industry, however, has no confidence that investment by Transnet is happening in an effective and efficient way, and they are not willing to back any of the parastatal’s efforts with their own investment. This is not only about communication between the two parties being inadequate, it is about a crisis of confidence,” he said.