TFR rail hikes raise industry ire

Rail users have slammed
proposed Transnet Freight
Rail (TFR) rate increases of
between 10% and 30%.
Looking at the reasoning
for its rates increases for
2011/12, a communication
from TFR said: “The
various corridors have been
reviewed based on cost to
serve, operating complexities
of the corridors, distance,
line gradients, crew and
locomotive changeovers,
traffic densities, and
investment plan, to name a
few.”
While the import and
export rates increases for
each of the corridors vary
between 10% and 30%
– depending on corridor
and container type – TFR
stated that its country-wide
rates “will be increased by
an average 10% across all
container categories in both
directions”.
Looking at shuttle
services prices, it said rates
“will be increased by an
average of 7% across all
container categories in both
directions”.
Unlike port users
who – when Transnet
National Ports Authority
(TNPA) claimed a wayabove-
inflation rate
average increase of 11.9%
– approached the Port
Regulator, which reduced
this to 4.49%, rail users have
no rail regulator to turn to.
Because of this, it is
believed that user bodies are
likely to take this up with
TFR at a high level.