Transnet’s plan to attract rail investment misses the mark

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It could increase freight costs for some miners by 65%, and then there’s the question of what to do about rampant cable theft.

Transnet’s draft ‘Network Statement’, which is intended to ready the logistics provider for private investment, has received a lukewarm reception from the transport sector.

“Traxtion remains fully committed to and believes in the potential of rail to revitalise the upstream South African economy. To this effect, we will be formally commenting on the draft Network Statement once gazetted by the Interim Rail Economic Regulatory Capacity.” Hence tariffs are loaded with many of the same inefficiencies National Treasury has promised to cure.

“The ‘savings’ are manifested in a slowly deteriorating condition of the infrastructure. Persistent lack of renewals can eventually lead to excess current maintenance requirements , which entail even higher manpower or expenditure requirements than before. The North Corridor connects Ermelo in the north-west of the country to Richards Bay on the KwaZulu-Natal coast, and is a crucial route for coal exporters seeking access to the European and Asian markets.“The Rail Infrastructure is significantly impacted by theft and vandalism and ageing infrastructure,” says the Network Statement. “The Corridor’s traction and distribution have substations that are offline due to theft and vandalism.

The Cape Corridor connects Cape Town to East London, Kimberley and Upington, as well as Namibia, and provides the largest coverage of all the corridors. It had to contend with 1 615 security incidents over the last year, about four a day.

 

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