There is no competition or battle for cargo in South Africa, say both Transnet Freight Rail and the Road Freight Association. According to the RFA there is no doubt that certain commodities are not only suited to rail, but should be transported that way. “Single bulk goods on a long-haul one-way service like iron ore, coal, steel and vehicles are suited to rail and the overall cost to the economy would be better if they were transported via rail,” says Gavin Kelly, RFA operations manager. “But at the same time there are many freight categories that are better suited to road transport and can be transported at a far lower rate than rail.” Both parties agree though that to date the cost of moving goods around the country has been too high. According to Kelly, the average transport cost factored into the price of an article is anything between 14% and 40% compared to the world average of 7%. Bheka Xaba, sales and marketing executive manager for TFR’s container and automotive unit, is adamant that TFR is not competing with road. “We cannot offer the same flexibility that road can, but certain commodities don’t need that flexibility and those commodities should be on rail. TFR is slowly but surely proving that it can take the commodities and offer a good, reliable service at a competitive rate.” According to Xaba, TFR is still a work in progress. “We are not asking for all of the cargo being moved by road at the moment, but come and talk to us and give us a chance to move some of your cargo by train.”
