Spoornet committed to reclaiming its share of Durban - Jo'burg traffic

SOYA MAGIDA
WHILE COEGA and coal have garnered a major
share of Spoornet’s R 34.8 bn budget over
the next four years, finance executive Johan
Bouwer reiterated the rail utility’s commitment
to reclaiming its market share on the Durban-
Johannesburg corridor when he addressed delegates
at the recent Southern African Transport Conference
in Pretoria.
Bouwer said the majority of the rail utility’s
new locomotives would be used to boost the
capacity of the ailing General Freight Business unit
(GFB).
Last year the unit transported 80-million tons of
freight, and the plan is to increase to volumes to
106- million by 2011.
Last year the rail utility failed to cope with the
increasing demands of the growing economy.
According to figures supplied to FTW, rail traffic
grew 0.3% between 1993 and 2004 while road
traffic grew by 5%. The number of new trucks on
South Africa’s roads has increased by 16.5 % in the
past three years whereas the number of wagons
and locomotives has decreased by 33% and 28%
respectively in the same period.
Despite these challenges, Spoornet increased
its revenue 4% to R 14.6 bn in the 2006/7 financial
year. The rail company now has a market share of
10%.
Tumi L ekgethe, Spoornet executive for
customer care, says the plan is to claw back lost
business opportunities and grow the market share
up to 30%. in the next five years.
To achieve this objective, the rail utility has
placed orders for 142 (110 coal line and 32 iron
ore) new locomotives while tenders have already
gone out for a further 212 locomotives and are at
the negotiation stage.
Lekgethe says the new acquisitions and improved
operational efficiencies will enable the company to
move about 226 million tons of freight from 2012.