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.”