State must retain strategic control - Gama

The state must retain strategic control of the freight network to lead and direct infrastructure investment if South Africa is to remain a competitive global player, said Transnet Freight Rail (TFR) chief executive, Siyabonga Gama. Addressing delegates at the 32nd annual Southern African Transport Conference held in Pretoria last week, he conceded that current freight systems were not performing efficiently. “South Africa’s freight volumes will double over the next 20 years, therefore sustained investment in capacity is required. We also need to enable the competitiveness of the country by reducing logistics and transport costs,” said Gama. He said fuel currently contributed to a large proportion of those costs, making the case for using alternate sources of energy. “There is also increasing global awareness of the need for a low carbon footprint to sustain the industry. Thus we’ve made creating an energyefficient freight system a priority, which includes a largescale modal shift from road to rail,” Gama said. TFR has also prioritised regional overland and global maritime connectivity. “Our capital investment approach – as part of our Market Demand Strategy – is to unlock freight corridors across the country, especially in regions that have historically been ignored,” he told delegates. Gama said this included the Durban, Free State and Gauteng logistics corridor; the Northern Province’s mineral belt; Saldanha- Northern Cape Development Zone and the South Eastern corridor development. “South Africa’s port system is already ranked 8th in the world and its rail system 11th globally. We hope to be ranked in the top five by 2020,” said Gama. INSERT Our capital investment approach is to unlock freight corridors across the country, especially in regions that have historically been ignored. – Siyabonga Gama