Swazi Rail looks at creating demand to grow the business

Whether countering a challenging economic climate that has seen a decline in cargo shipments or anticipating a more robust business environment, Swaziland Railway operates under a proactive philosophy espoused by CEO Gideon Mahlalela, past president of the Southern Africa Railway Association. The key is to encourage development of new industrial sectors that when established can use rail for transport. Under the previous more passive approach, clients would come with orders to move cargo, and the rail line would work to accommodate the demand, acquiring new equipment or expanding routes as needed. “I’m doing it differently. I’m trying to create demand. Local or transit, wherever it comes from. I look at opportunities where they may be, and work to make those happen,” Mahlalela says. As an example, he mentions Swaziland’s large coal deposits. The mineral is most economically transported by rail. Indeed, all of Swaziland’s coal is exported, directed to Mpumalanga on Swaziland Railway trains. “Coal deposits in Swaziland are one and a half billion tonnes. This is a large amount of material that can be transported. To make such new business a reality for the rail company, Mahlalela is working with government and private sector players on initiatives to get the mineral out of the ground. Other countries’ rail systems should adopt a proactive strategy that seeks out new opportunities, in part to correct the region’s over-reliance on road transport, he said.