The will is there, but the rail service isn’t

Private companies would use rail – if it was capable of meeting their needs. This was one of the most significant outcomes of this year’s Barloworld Logistics supplychainforesight survey that found companies were willing to use rail, if Transnet could provide the capacity. Around 80% of companies surveyed said they currently moved less than 10% of their goods by rail, while 46% said they would move more than 20% of their goods by this mode if adequate rail capacity were available. “This is a tragic indictment of the country’s key economic failing,” said Barloworld Logistics marketing general manager Kate Stubbs. “Transnet has a multibillion rand long-term investment programme on track, but even though it looks good the reality is that it is moving too slowly for the private sector.” And while no one sees a “huge step-change” in rail infrastructure and operations, goods will continue to be moved by road. “This survey proves there is an outcry from the private sector for a functional rail system. They are saying we want rail and we need it.” Speaking at the Johannesburg launch of the survey Devesh Killan from Transnet acknowledged the private sector need. “Obviously we are not where the industry wants us to be at present, but we are making progress and getting there, slowly but surely. In terms of streamlining processes, improving service delivery and upgrading rolling stock we are working towards our goals.” He said the parastatal was also on track with the spending of its R80 billion investment over the next five years. “We must also not forget that historically in South Africa rail has not been part of supply chain management and that is something that must be changed. The intent of companies is also not the same as willingness and I believe we need to get to the point where intent is shown by implementation.” He said while Transnet still faced some major issues, general freight was definitely a target for the organisation along with containers. “We are putting much effort into this part of the business and hoping to improve on our service delivery at all times.” According to Stubbs, another major finding of this year’s survey was the need for publicprivate cooperation to improve infrastructure. “Most of the 377 respondents in the survey strongly agreed there was a need for publicprivate partnerships in the freight rail sector, and that private sector investment was needed.” This was welcomed by Killan who said Transnet was in favour of collaboration. “It is important however that as an organisation we look at what our needs are, what it is we want out of PPPs, and how we are going to serve all the role-players.” He said Transnet was in the in process of finalising its framework for PPPs that would play a guiding role in future. “We come from decades of noninvestment in rail infrastructure and rolling stock. Our intent is to build a world class rail network for South Africa, but it is going to take time to get to where the private sector need and wants us to be.”