Crisis. Discuss how the key stakeholder partnerships - current and future are critical to government and business as part of the overall intermodal transport strategy.
Government's new plan to shift cargo from roads back to rail
26TH JANUARY 2024
Government is seeking to finalise a plan aimed at improving its rail network and move cargo away from a billion rand per day to its logistics crises, government has said an urgentturnaround is needed to improve its 31 000km locomotive network as more and more cargo moves from rail to trucks.
The Department of Transport (DoT) hosted a discussion with industry stakeholders regarding the Freight Road to Rail Migration Plan on Thursday - the latest development in the wake of President Cyril Ramphosa forming the National Logistics Crisis Committee last year.
Transnet, the South African National Roads Agency (Sanral) and private sector companies were all in attendance.
The Freight Road to Rail Migration Plan is part of government's strategies to improve the country's ongoing logistics crises. In October last year, the government unveiled its Freight Logistics Roadmap to improve the ports and rail networks and encourage private sector participation, and Cabinet has since approved the plan.
The DoT's deputy director-general, Rihandzu Mashava, said operational deficiencies and underinvestment in railway infrastructure mean that South Africa's railway has been unable to handle increasing cargo movement demand, resulting in expensive transport costs for businesses.
Mashava said infrastructure challenges, including rail and port woes, have meant that South Africa has become "overlooked and overshadowed by other African countries such as Morocco and Kenyan for exports.
"Kenya has become a competitor of South Africa, when it was not before. Our biggest previously was our neighbours and
Morocco and Egypt. This is because the port of Mombasa has outperformed the Durban port," she said during the meeting. According to Mashava, around a third of long-distance freight has moved from rail to roads within five years (226-million tonnes in 2017/18 to 149.5-million tonnes in 2022/23), with businesses increasingly relying on trucks to transport their cargo nationwide.
Currently, 87% of freight is moved by truck, causing increased congestion and road infrastructure damage.
News24 previously reported that massive congestion had been caused by trucks looking to deliver cargo to the Richards Bay Port after poor rail performance from Transnet Freight Rail's coal corridor.
This led to calls by Transnet to block the trucks as the congestion reached "uncontrollable levels," with the City of Richards Bay also threatening legal action against the port, as it could not cope with truck traffic.
According to the roadmap, various plans to migrate road to rail will be completed within one to five years.
These include: increasing legislation for the road freight sector, improving government regulation the freight road sector with dedicated operational hours for freight movement; improving rail infrastructure through public-private partnerships (PPS); as well as ensuring the translation of skills from road to rail for workers to improve labor capacity in the rail network. Local manufacturing of locomotive parts and plans to make rail more attractive for businesses through costs and tariff structures will also be implemented.
A step in the right direction
Responses from businesses during the meeting indicated keen interest in the plan. However, they said quick implementation was "critical" to ensure that companies would invest and that such investment
"would only be possible in the right conditions".
Speaking to News24, logistics expert in the Department of Industrial Engineering at Stellenbosch University, Jan Havenga, said there needs to be an urgent restructuring of the logistics network, as the
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