Transhipment key to Transnet’s Africa growth strategy

Transnet has set ambitious targets for its growth as a transhipment hub serving East and West Africa, according to its latest Sustainability Report released this week.

The company has recorded significant growth in cross-border activities – with revenue up from R1.5 billion in 2014 to R2.55bn in 2015.

As a percentage of revenue this translates into an increase from 2.6% in 2014 to 4.2% in 2015 – and this is likely to rise as Transnet’s Africa Strategy, designed to extend business beyond the borders of South Africa and into the region, takes shape.

The ports of Durban and Ngqura have been positioned as transhipment hubs servicing East and West Africa. Transhipment containers account for 22% of total container throughput at Transnet’s terminals and 61% of this volume is destined for or shipped from East and West African ports.

Transnet sees the transhipment business opening options for the company to play a role in connecting Angola, Namibia, Mozambique, Mauritius, Tanzania and Kenya ports which are or could be served by a South African hub that can also link to cross-border rail corridors.

Freight Rail’s international business unit has satellite offices in Namibia, Swaziland and Lesotho and the primary aim is to grow cross-border volumes and enable regional rail integration focusing on the Maputo, East-West and North-South Corridors.

Joint Operating Centres have been established in Mozambique, Botswana and Zimbabwe to promote a unified rail operating system between the rail companies that own and operate the corridors.