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.