Rail slowly clawing its way back

“Rail is gradually clawing its way back into the market but expectations of a speedy recovery are farfetched and unrealistic,” says John Thompson, CEO of the RailRoad Association of South Africa. “We are definitely seeing yearon- year increases in tonnage on rail, but there’s also an increase in the volume of freight moving by road.” With the realisation that an intermodal transportation system for South Africa is the only feasible option, efforts to improve the rail network and rolling stock are under way. “If one looks at the average age of rolling stock in the world you will find our rolling stock is twice the age – most of it over 30 years old.” According to Dr Jan Havenga, director of the Centre for Supply Chain Management at the University of Stellenbosch, the decision by government to stop investing in rail infrastructure is now coming to haunt us. “They let the wheels fall off the railways. Any transport mode only has a specific lifespan and our infrastructure is past its due date,” he told FTW. “In the past four years we have seen a major turnaround, with major investment happening around rail. One must remember though that change will not happen overnight, taking the investment backlog into consideration.” According to Havenga it will take at least another four to six years before the market sees any difference in rail operations in the country. “We are in the midst of an investment programme by Transnet that is a very positive sign. I am confident in that I see a commitment from Transnet that they want to make rail work, but it will take time.” Said Thompson: “We need to move away from just talking. Action is what is needed. South Africa needs rail not only because of the cost of delivery of ton per kilometre, but also because of the cost to the tax payer and the cost to the environment.” Business, however, remains sceptical about rail, and confidence will have to be addressed. The latest supplychainforesight survey released by Barloworld recently found that rail controlled less than 10% of the market share, with most companies surveyed preferring to use road. But most agreed they would move more freight to rail if it was more efficient. “It is about having a predictable service more than anything else,” said Thompson. According to Mutshutshu Nxumalo, president of the South African Road Federation, a current backlog of some R100 million is estimated for road maintenance. “We have to move some of our freight off the road network. It cannot continue to carry the load by itself. All over the world rail is a prime mover of freight, with government heavily subsidising this mode of transport and private concessionaires running the freight. South Africa should do the same.” Nxumalo says it is important to bring about a balance between road and rail. “We are straining our road network and it is an asset that we cannot risk not having. Economically it would be our death.” With Transnet recently having taken delivery of the first two of the 100 new locomotives it has purchased, the commitment to renewing its fleet will bring about more efficiency.