TFR sets ambitious GFB growth target

As Transnet Freight Rail’s Market Demand Strategy moves into high gear, the rail utility is predicting its biggest growth in general freight business – expected to move from 82mt in 2013 to 180mt by 2020. “Container business has been growing every year in excess of inflation,” TFR CEO Siyabonga Gama told delegates at a JCCI business breakfast in Johannesburg last week. “We’re taking good market share with15- 20% growth year on year. “Our R201bn MDS is a decisive intervention to eliminate all challenges,” he said. “We are upgrading our rolling stock fleet and infrastructure network after years of delinquent underinvestment and trying to modernise our assets and fleet. “ In the past the focus has been on replacing existing infrastructure, said Gama. “From next year – 2014/15 – R13.6bn will be spent on expansion; the following year R20.4bn; and for the next two years R17.9bn and R15.2bn. Until now R8.2bn has been invested in expansion, so it’s growing. “There’s been a lot of investment in infrastructure and locos which will taper off over time. We will be replacing half of the loco fleet over the next 4-5 years. “The turnaround has begun,” said Gama. “We have been able to stabilise through the recession and are starting to grow the volumes. “Freight rail is committed to improving customer service and we are passionate about creating an efficient and cost-effective logistics platform for the country. This is your new partner in logistics,” he said.