Transnet Freight Rail (TFR) officially launched the Container and Automotive Business (CAB) unit last week as part of its growth strategy. The division aims to increase market share by more than 50 percent and move more than 1 million 20-foot equivalent units by 2015.
The CAB unit has been in the making since 2006. Since then, TFR has grown the number of trains from four a day to 22 a day on the Natal corridor.
In the year to March, container volumes increased to 628 000 compared with 525 000 in 2009/10, while automotive volumes shot up 29 percent to 131 000 units.
The unit’s assets and crews have been ring-fenced. Siyabonga Gama, the chief executive at TFR, said the unit would also have more decision-making powers.
“It has been a long road but it has been worth it. It is a road we had to undertake for everyone in the country. When you move your cargo by rail, it is cheaper and it is important for our carbon footprint because with rail you reduce carbon dioxide emissions,” he said.
“But it is not only about reducing the cost of doing business, it is also about the kind of efficiencies that go with it. The time it takes to move cargo from one point to the other must be predictable,” Gama said.
TFR is not looking at growth only, it is also working on investments which will be made by the parastatal itself and the private sector. Gama said there were plans to introduce the Anaconda, which is a 75-wagon train service on all its routes.
At present, this service is available on the Durban-Johannesburg route. Gama added that details of future investments would be announced by group chief executive Brian Molefe in two months.
He said private sector participation at Transnet was going to be important to improve the country’s industrial capability.
“We have not yet finalised all the specific projects that need to be targeted. What we do know is we need investment in new rail infrastructure, rolling stock investments, particularly in wagons in the mining sector and other sectors that have good growth potential,” Gama said.
Transnet has called for private sector interest as it tries to revitalise branch lines that are currently closed. The branch lines comprise 7 278km of the 20 953km rail network.
Gama said TFR was liaising with government departments and provinces concerned on how to move forward. The market would be given an update after July, he said. - Business Report