Spoornet gets more funds for wagons

Leonard Neill TRANSNET HAS approved an additional sum of R4 billion to Spoornet for the purchase and upgrade of wagons to help the rail provider increase its rolling stock capacity to meet the current national rail crisis. It will be paid out over a five-year period, with R134 million allocated for the current financial year 2002-3, which ends on March 31. Transnet will then decide the amount available for the next financial year. It is expected that the annual amount will be R1 billion thereafter. In a statement to Spoornet, Transnet says its financial committee has supported Spoornet’s fleet renewal programme and has addressed it in terms of both affordability and business needs The amount is not part of the R15 billion previously approved for the purchase of new locomotives and rolling stock, and nor is it connected with the R200 million that Transnet gave Spoornet three months ago to refurbish out-of-use wagons and purchase razor wire to improve Spoornet’s operations. Part of the latest amount allocated to Spoornet will be spent on upgrading stock and infrastructure on the Orex line which serves the Sishen-Saldanha iron ore operation. Transnet has also allocated R1.1 billion to SA Port Operations (Sapo) to upgrade the Saldanha iron ore terminal, which has been battling to cope with increasing export volumes. Originally built to handle 18 million tons annually, the terminal handled in excess of 25mt last year. Now Saldanha operations are faced with the prospect of a further annual 10 million tons if the proposed new mine at Sishen South comes on stream after feasibility studies are completed. Currently four trains, each pulling more than 200 wagons laden with iron ore, arrive at Saldanha daily, with more than 95% of the product exported to Europe and the Far East.