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.