Leonard Neill SPOORNET HAS reduced planned increases in grain rates for the year to assist the poor against rising food costs. But the rail operator has emphasised that this is not to be seen as backing down on general freight rate increases announced recently. The tariff on domestic wheat and maize will be raised by 12% instead of the planned 15%, while the increase for bran will be reduced to 35% and flour to 25%. Both were initially listed at a 50% increase. Export sunflower seed is down to 40% and domestic sunflower seed is lowered to 30%, both from an initially planned 67%. "Spoornet management has taken due consideration of the current economic trends, among them the rise in inflation, and thus the move is meant to protect the poor people who depend on staple foods," says chief executive Zandile Jakavula. Inflation is climbing rapidly in the wake of the rand's steep depreciation late last year, with the country's poor set to suffer the most from increases in staple prices, he said. Jakavula has emphasised, however, that Spoornet will not back down on tariff increases set to be in place on May 1, and which are seen as necessary to make the loss-making general freight business sustainable and viable.
