Shippers tune in to rail benefits

Rail is slowly but surely becoming a much more viable option, with more and more road users taking the time to investigate what rail has to offer. According to Gareth Gale, general manager of Trans Ocean SA, a division of beverage logistics specialists JF Hillebrand SA, the rail link between City Deep in Johannesburg and the Port of Durban has improved significantly. “While we remain focused on using road transport on the Johannesburg-Durban route, we find ourselves considering rail options much more than we did in the past,” he told FTW. “This is especially so on imports into Gauteng. We certainly get the sense that with the economic downturn there has been some alleviation of pressure on the infrastructural system and this has resulted in some major efficiency improvements, with Transnet, City Deep and other container depots improving rail efficiency.” This, said Gale, is good news for Gauteng and its role as a hub into Africa. “Our crossborder trucking volumes have definitely improved in line with our African business development strategy and we remain extremely excited about what is happening in Gauteng and the general region.” While the Western Cape will continue to be the company’s primary market and revenue driver, given its focus on the wine, spirit and beverage markets, Trans Ocean SA , which specialises in the transportation of bulk liquids using flexitank technology, believes that Gauteng offers big growth opportunities. “As far as Gauteng is concerned, and being a specialist in liquids, the market is of course smaller, but still extremely exciting. We continue to see opportunities in the mining, construction and manufacturing sectors, notwithstanding the difficulties being experienced in these sectors. Given the competitive environment in Gauteng, companies need to remain nimble, adaptable and world-class.” He said they expected to see further industry consolidation in the short to medium term as companies maintained a ‘critical mass’. “Being client-centric and ensuring that the ‘specialisation gap’ is maintained is absolutely critical. It is imperative for companies to find their ‘sweet-spot’ and ensure that this knowledge, expertise and passion is transferred to their customers’ businesses,” said Gale. “The depreciation in our currency along with a very poor 2012 northern hemisphere wine harvest has culminated in huge interest being shown in South African wine this year. There has also been a major structural change in the industry and in our business with almost 67% of all wine exported from South Africa being exported in bulk (primarily in 24 000 litre flexitanks) and bottled and packaged in Europe, the UK and the US.” INSERT & CAPTION It is imperative for companies to find their sweet-spot and ensure that this knowledge, expertise and passion is transferred to their customers’ businesses. – Gareth Gale