Swazi rail volumes reflect economic decline

Declining freight volumes moved by the rail and road transport industry in Swaziland reflect an economy hit by setbacks in the manufacturing and mining sectors this past year. Swaziland Railway lost some business importing textile inputs and exporting finished garments when factories started closing late last year in reaction to Swaziland’s loss of trading privileges with the US under the African Growth and Opportunities Act (Agoa). Road freight haulers also saw a minimum of 15% decline in their business from the garment sector. Both road and rail transport firms lost a major client in the mining sector with the closure of an iron ore business late in 2014 that relied both on trucks and rail to move production to Maputo for export. Swaziland’s economy is not in recession but is growing at the slowest rate of any SADC country. Road remains the popular choice for a majority of shippers, and border post clearance times are not onerous either from SA or Mozambique. Rail however edges road in the construction of new rail line versus new highways. The first new rail line in decades, built in partnership with Transnet Freight Rail, will allow Swaziland Railway to move freight originating from Gauteng to the Mozambique border en route to Maputo. The Lothair line opens in 2017. Swaziland’s government is concentrating its highway building efforts on a new road link from Manzini to an international airport opened last year in Sikhupe. However, with no industry or town nearby, the airport is in “the middle of nowhere” and the highway is of no use to roadfreight transporters.