Spoornet – customers still searching for the right signals

The most common question on the mind of anyone involved in South Africa’s provision of a future supply chain infrastructure is what is needed to move more goods from road transportation to rail. KEVIN MAYHEW takes a closer look. We have a problem! For yet another year the debate has continued about making the rail network more efficient and attractive to lure cargo from road transportation – particularly products that are ideally suited to rail. Twelve months characterised by the same statements trotted out by Spoornet as its service tries to avoid screeching to a halt. All the while road transportation continues to pile on the tonnage as it increases its share of cargo to a staggering 80% of what moves to make the economy function. At the same time the cost of South Africa’s logistics continues to rise to almost double that of any country with which it will have to compete in the global marketplace. The present situation is heading both modes towards disaster – Spoornet the big employer and bulk carrier threatened and extraordinary tonnage destroying the road foundation upon which its successful alternative is dependent. And Transnet CEO, Maria Ramos, appears to have relegated even her most senior minions to mere puppets who – when they in fact honour commitments to address relevant forums – have well constructed power point presentations. They appear to be missing the point completely with their speeches on Transnet’s turnaround strategy that is big on staggering investment figures but small on detail, or for that matter any visible progress with implementation. Such capital projects as new lines, rail upgrades and concessions - such as that still stalled in Mozambique - take time admittedly. However, most of what Spoornet is supposed to be doing with its tens of billions in investment over the next five years is still under discussion. Delegations are still going overseas to look at sophisticated models for solutions while the system fails to deliver. Spoornet’s general manager of its National Operations Centre spoke of the railway giant “committing itself to working with overborder railway counterparts to make services uniform to ensure that rail is not the second cousin to road once over the border”. The challenge of South Africa’s under-performing service at home remains unaddressed as it is already second cousin in South Africa. Further up the pecking order is Pradeep Maharaj, Transnet’s group executive strategy and transformation, who talked eloquently about Spoornet focusing on supply chain efficiency when addressing industry role players in February this year. At the same time a glimmer of hope as well from the articulate Maharaj - Spoornet had decided to increase capacity and cut transit time on the Johannesburg – Durban route as part of its turnaround strategy designed to restore its somewhat tarnished image for reliability. Five scheduled north- and south-bound freight trains began servicing the country’s most important corridor each day. Last count it was 42% under-utilised. At no point has it occurred to Spoornet to bring on board private sector bodies such as the South African Chamber of Business (Sacob) or the Road Freight Association (RFA) to say help us guys, we need to win back what is obviously rail traffic that we have managed to aggrieve in the past. A little disconcerting recently was an aside by a highly positioned National Ports Authority speaker at a conference who said: “There are strong rumours in some circles about regulations such as restricted trucking hours being introduced.” This could make industry more attracted to rail as delivery efficiency would become more comparable with that of the door-to-door anytime service of road. But things might be changing. In the Eastern Cape the Border-Kei Chamber of Business has made history by joining with Spoornet and the provincial government’s Department of Transport and Roads to establish the Eastern Cape Rail Committee. Believe it or not it is to find ways to shift mainly timber freight back to rail with incentives on particularly the East London-Umtata line. Will timber provide the seed that will take root and blossom into a more inclusive approach to finding solutions? Let’s hope so, for at the moment developments are as exciting as watching trees grow.