TFR revisits equalisation of rail rates

Transnet Freight Rail’s Wiseman Zazi Madinane has opened the door to further discussions on the equalisation of rail rates between Port Elizabeth and Johannesburg and Durban and Johannesburg to relieve pressure on the Port of Durban during upgrades. The executive manager of TFR’s intermodal business unit told guests at a Safmarine business breakfast in Johannesburg last week that he was open to pursuing the option further. “Prior to the refurbishments in Durban we did a lot of thinking and talking and spoke to our customers well in advance,” Safmarine’s Southern Africa sales executive, Dieter Veening, told FTW. “We were toying with the opportunity of reducing pressure in Durban by calling Port Elizabeth first. “We couldn’t do it on the Asia service where Durban is the first port of call because clients want that cargo as soon as it gets to Durban. “But one of the angles was to call at Port Elizabeth on other services and to look at equalisation of rails rate between PE and Johannesburg and Durban and Johannesburg because the refurbishment will be under way for some time. “This could have potentially saved – and can still reduce – a lot of pressure on Durban,” he said. “It’s one of the discussions that has gone around Transnet,” said Madinane. “In principle we believe that customers should not absorb the cost of our refurbishments and we need to look at how we can manage it commercially, and if it does make sense, because we are under pressure at the port of Durban,” he said. “The problem at the moment is that the PE line is experiencing high volumes – particularly of manganese – and capacity is quite constrained. “But it’s a discussion on which we have not closed the door.” CAPTION Wiseman Madinane … ‘We need to look at how we can manage it commercially.’