‘Rail must deliver on promises’

The cost of moving goods around South Africa is far too high. In 2007 more than 650 million tonnes were moved on land, with the average transport cost factored into the price of an article anything between 14% and 40%. The world average is only 7%. “We cannot keep on doing business this way,” says Gavin Kelly, technical and operations manager of the Road Freight Association. “Already countries that move freight through South Africa are investigating ways of bypassing us to bring costs down.” There is no doubt, say the experts, that South Africa needs to address its rail infrastructure and move beyond the road versus rail debate. Kelly says there is no battle between road and rail in the country. “There are certain commodities that are suited for rail and should be on rail such as bulk goods on a long destination one-way service as the overall cost to the company would be better. Then there are many freight categories suited to road transport that can be moved at a far lower rate than rail. We can’t continue to move everything on road – that is the reality.” But several challenges face the country’s rail network despite much work from parastatal Transnet. “They are just not getting their act together,” says Kelly. “Rail cannot deliver door to door, it cannot guarantee loading, off-loading and delivery times or the safety of goods. At present it is just not an efficient, frequent and reliable service, no matter how much we need it to be.” This is agreed by several transporters who maintain that using rail is not an option as it is not reliable enough. Says Hazel Briggs of HB Services: “I would need to be assured about the cargo’s safety at all times, even if Transnet improves its service.” This is the general industry sentiment, with many transporters having no faith in the capability of rail. Transnet, however, remains committed to improving the service and addressing the needs of the industry. Purchasing the first diesel locomotives in 20 years, Transnet Rail Engineering (TRE) in conjunction with Electro-Motive Diesel (EMD) will see 50 As New – GT26CU-3/ Class 39-200 locomotives being manufactured in South Africa. The 50 units are scheduled for delivery by the end of the third quarter of 2009. According to Richard Vallihu, Transnet Rail Engineering CE, the entire concept, design, prototype and setting up of the production line was concluded in three months and shows Transnet’s commitment to upgrading its infrastructure.