The logistic problems faced by Transnet SOC Ltd. — from locomotive shortages to vandalism — have forced miners to choose the more expensive option of trucking commodities to the coast to take advantage of higher prices.
That raises concern over what will happen to truck owners in the wake of lower commodity prices and as rail operations improve, Transnet SOC Ltd. Chief Executive Officer Portia Derby said at a Bloomberg event in Johannesburg. Operators in the sector need to start earnest talks and establish a model that will include truckers long-term.
Trucks carrying coal and other commodities sit in queues that stretch for miles to the Mozambican border and crowd ports along the coast. The onslaught of traffic in rural areas and towns has created safety issues for the communities as well as drivers. “We certainly need to get more more freight off the roads and back on the rail straight to port and in a very streamlined manner,” Chiedza Madzima, head of operational risk research for BMI-Fitch Solutions, said at the event.
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