‘Spoornet’s growth plans will have little impact on road volumes’

JOY ORLEK BOLD PLANS by Spoornet to double its current 84mt per annum of general freight business volumes in the next four years are unlikely to achieve the objective of moving traffic from road to rail, according to RailRoad Association of South Africa CEO John Thompson. “If you look at the objectives of Asgisa (Accelerated and Shared Growth Initiative for South Africa), three years from now the target is 6% compound growth per annum. “If Spoornet wants to double its 84mt per annum volume in four years, it is not really eating to any great extent into the tonnage that has migrated over the past years from rail to road. It will merely be moving the additional volumes that will hopefully have been generated. “If you’re looking for a meaningful modal shift from road to rail, the targets that Spoornet have set themselves don’t do very much for the overall modal mix.” And the need for this shift is clearly demonstrated by the costs of road maintenance. “Three or four years ago acting transport minister at the time, Jeff Radebe, admitted that the deferred maintenance on provincial roads was around R56bn plus a further R6bn on the non-tolled national roads. “This has been caused by blatant overloading and re-engineering of scientific principles,” says Thompson. The roads were built historically to an engineering standard which would allow 8.2 short tons axle loads with a life span of 25 years. “This was arbitrarily changed to 9 tonnes which meant their life span dropped from 25 years to 15 years and it’s all starting to catch up with us now.” According to Thompson, a recent report put deferred maintenance road costs at R200bn. All of which demonstrates the importance of moving rail-friendly traffic back where it belongs. “For certain goods – minerals, full loads and loads over a distance - rail is considerably cheaper than road. And more than that, the impact on pollution would be enormous.” It has been well documented that the direct cost of logistics in the EU runs at 8% of GDP while hidden costs like land usage and pollution add 7.8%. In SA the direct logistics cost is 15.2%, adding up to 20% plus with indirect costs. For our landlocked neighbours the cost is probably 25-30%. “If we’re trying to compete in the global village with 22-30% of GDP tied up in transport, we’re on a hiding to nowhere. It’s therefore important that not only the direct but indirect costs as well are managed.” And Thompson is adamant that rail and road must not be regarded as competitors. “We have to look at functional and well located intermodal exchanges. “We have to find an equitable way of bringing the modal parties together, changing the focus and finding a win-win situation.” Spoornet has recognised that predictability is the essence of good service, says Thompson. “What the customer wants is certitude of delivery. This hasn’t happened so far, and until it does, road transport will continue to triumph over rail regardless of the good intentions of Spoornet management.”