Transnet CEO fears major job losses in trucking industry after road demand fades

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South Africa’s surge in trucking that’s emerged largely due to higher coal prices and train bottlenecks may lead to catastrophic job losses in the road transport sector when factors ease, according to the head of the state-owned port and rail company. 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.

South Africa’s surge in trucking that’s emerged largely due to higher coal prices and train bottlenecks may lead to catastrophic job losses in the road transport sector when factors ease, according to the head of the state-owned port and rail company.

Over 3,500 trucks per day carry mined products across the nation’s roads, more than double such traffic in 2020, according to Minerals Council South Africa. “We have created the demand — our failure on one hand and also the demand of the mining industry has created the trucking industry,” she said. “For the vast majority of the truckers they are moms and pops, who when they left work took their pensions and bought a truck because there was an opportunity.”

But prices for export coal have dropped more than 50% in the first half of the year, compared to the same period in 2022, Exxaro Resources reported Thursday in a results statement.

 

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