Rail confident of 25% growth over next three years

With total freight demand expected to double in the next 20 years the implementation of a high performance rail corridor will form the backbone of successful delivery. That was the message from Ivindra Naidoo, Transnet general manager for strategy and business modelling, who told delegates at last week’s Transport Forum in Woodmead, Johannesburg that Transnet’s R80 billion investment programme was on track and that the replacement of ageing assets over the next five years would create capacity ahead of demand. “The balance of Transnet’s spending in recent years has already tilted towards expansion as opposed to replacement as was the case when we launched our turnaround strategy in 2004.” Expansion of container capacity at the Durban and Cape Town ports, a new multi-pipeline project, the expansion of a coal export line as well as the capital maintenance of rolling stock and infrastructure and the upgrade of general freight lines is under way. “In the next five years we will also see the combined acquisition of 405 locomotives for coal, iron ore and general freight lines to improve reliability of services,” said Naidoo. “We still face several challenges and the slowdown of the global economy is but one. We are however confident that we will be able to grow total volumes transported for Rail confident of 25% growth over next three years our customers by 25% over the next three years.” Said Naidoo: “South Africa is one of the best performing freight systems. It is however necessary for the country to apply transport more efficiently than the norm. Transport costs are rising faster than inflation. In the long term we will have to transfer more cargo onto rail to manage the transport costs. “Our ports will also have to increase their efficiency and integrated services have become a necessity. The synergy of port, rail and pipeline is imperative.”