Transnet to engage with mining industry to assess capacity needs

Transnet Freight Rail will engage robustly with customers on their capacity requirements, and the mining industry will be a strong focus, Transnet’s Cleopatra Schiceka told delegates at the recent Chromite Conference in Johannesburg. “Mines in particular will be engaged,” said Shiceka, “as bulk minerals represent more than 70% of the general freight portfolio.” It’s all part and parcel of Transnet’s aggressive drive to encourage migration from road to rail, particularly for heavy-haul cargo travelling long distances, not suited for road transport. It’s an initiative that Graham Gaskell of the Reinhardt Transport Group has welcomed – although with some reservations. “Recent efforts by Transnet to improve service levels and its ambitious capital expenditure plans are good news for the country and industry, but may only lead to current volumes being better serviced rather than catering for increased production volumes,” he said. “And the realisation of Transnet’s plans may be some time away.” For the chromite industry in particular, from a road perspective, efficiency and cost are major challenges, said Gaskell. “The geographical location of the chrome ore and other mines far from the export ports in southern Africa, the imbalance in import and export dry bulk volumes, and limited industry collaboration in respect of volume movement are just some of them.” And Gaskell believes that current legislation is indirectly designed to protect Transnet and make road less efficient and costly. “Let Transnet run an effective and efficient rail service, which is needed, but also allow road transport to introduce technology that is available, better suited, more costeffective and safer, thereby allowing the chrome industry to compete more effectively in the world chrome markets.” Both however agreed that an efficient intermodal transport system was the optimal solution. Schiceka acknowledged that Transnet’s rail network and service delivery had not always been of an acceptable standard, and had led to more users choosing road over rail. But low productivity and efficiency were the result of a lack of investment in rail maintenance, infrastructure and rolling stock, said Schiceka, who believes that Transnet’s R300 billion seven-year investment into rail, port and pipeline will in some part help to remedy the situation.