Higher costs will be addressed
ALAN PEAT
RAIL RATES on the Port Elizabeth-Gauteng rail corridor will be fixed by negotiation from June 1, according to Spoornet's official spokesman, Mike Asefovitz.
This after the withdrawal on May 31 of the equalisation rate - a matching of the rate to that of the shorter Durban-Gauteng route, and designed to relieve Port of Durban congestion by deviating cargo to PE harbour.
But it has been too successful in its three years of life.
When the original withdrawal date of April 1 was confirmed by Spoornet, there was a swift reaction from the business community. Loud complaints were heard from the shipper, shipowner, freight forwarding and landside transport industries that an up-to three-year-old commitment to PE was now being put under financial stress.
They further maintained that there was no guarantee that the congestion at Durban was cured, and would not return if now PE freighted goods were once again fed back into the crowded Kwa Zulu Natal sea hub.
The withdrawal announcement saw bodies representing industry - especially the motor manufacturers - appealing for meetings with Spoornet to discuss the problem of higher costs suddenly being imposed, and looking for some form of tariff concession.
But the protests have been met by a remarkably cool and co-operative response from Spoornet.
We looked at this as a holistic operational and economic picture, said Asefovitz. We're trying to see it in everybody's interests.
The rail carrier has, therefore, allowed an extra two-month period of grace following the original April 1 withdrawal date. This, said Asefovitz, giving our people sufficient time to enter into negotiation with our clients.
All our previous contract clients have been targeted, and our marketing team is speaking to them all.
Meantime, Spoornet business manager Christelle Rentsch had been telling a PE gathering the same thing - and meeting with a delighted response.
The meeting was very fruitful, said Willie Basson, PE chairman of Asabosa, and it looks like a positive outcome from Spoornet after the May 31 withdrawal date. We were told that there is room for negotiation, and that the rates will be affordable.
We're more heartened now that it looks like not being the end of the lower rate structure.
While the individual negotiations with the motor industry are not yet finalised (March 24), Asefovitz described the Spoornet attitude as looking for a win-win situation for both parties.
While it's the motor and allied industries that provide the bulk of PE harbour's activities, Basson also highlights the citrus fruit, fishing, and wool and hides industries as other major users of the port.
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