TFR explores bimodal systems to cater for door-to-door business

Addressing rail’s inefficiencies is not only about the performance of Transnet Freight Rail – it’s about the efficiency of South Africa’s supply chain as a whole, which is why it is critical for TFR to address the challenges it faces sooner rather than later. And the challenges are extensive. “Cable theft on the network continues to be a major problem,” says Thuthuka Dladla, the capacity planning senior manager in the TFR’s container and automotive business. “Thanks to interventions like increased security, community involvement and crime awareness campaigns, there has been a sharp decline. But TFR is pushing for a review of the legislation to make copper a precious metal so that dealers would need to be licensed.” In terms of capacity, TFR’s wagon upgrade programme has been well documented and investment is already in full swing to respond to the changing market demand. “We are fast-tracking terminal Capex and have identified critical initiatives where we are encouraging private sector participation in areas where we don’t have expertise.” Capturing domestic and automotive traffic is also an important priority. “The question is how we become competitive for both the domestic and automotive market which is traditionally door-to-door business and not suited to rail, says Dladla. TFR is looking at different technologies to address this market segment, among them bimodal systems, he added. This will involve significant investment and the rail utility is currently assessing its options in this area. In essence it’s all about reducing South Africa’s unacceptably high cost of logistics. “It is in our key interests as a state-owned enterprise to make sure that the supply chain is efficient and to make ‘SA Pty Ltd’ the best company in the world,” says sales and marketing executive Bheka Xaba. “If we are not efficient South Africa’s mining products won’t be able to compete or be viable compared to other options in the likes of Australia. Ultimately it’s about lowering our logistics costs and benefiting the country as a whole.”