Barbara Creecy, South Africa’s Minister of Transport, has stated that fixing the country’s transport and logistics infrastructure is a key priority.
Logistical issues and bottlenecks are a major issue in South Africa, costing the country over R1 billion a day.
To solve this, the Department of Transport has introduced a clear set of goals for the sector.
This includes short-term interventions and long-term reforms across the state-owned entities the Transport Department oversees – including Transnet, PRASA, RSR, and SANRAL.
A few stand-out goals include those targeted at South Africa’s ailing railway networks.
Aside from the Gautrain, these railway networks predominantly date from the 1970s and are considerably behind other economies’ now highly automated and digitised systems.
Creecy indicated the Department intends to increase the annual freight moved on Transnet’s rail network from 149 million tonnes to 250 million tonnes.
Additionally, PRASA’s commuter network will be restored to reach 600 million passenger journeys a year by 2030.
Currently, PRASA only has 35 of its 40 key lines operational and averages around 77 million yearly passengers.
She also noted that in the last year, the Department of Transport had already increased the tonnage limit for rail freight from 149 to 161 million tonnes.
However, extensive infrastructure problems present a substantial challenge for increasing this limit any further and meeting the desired tonnage.
This includes ageing and broken equipment, as well as a lack of investment, preventing the replacement or repair of this infrastructure.
To solve this, a funding request has been submitted to the National Treasury alongside the longer-term rail reform plans.
This submission includes reforms to open key freight corridors to private operators and third parties – a first for the transport sector.
She also noted that operational improvements will be needed to take full advantage of new trains.
“We have 287 of the 600 new Prasa trains in service, but to run them properly, we need the signalling in place,” Creecy said.
A new National Bill for rail is also being prepared, with it being “the first legislation to properly regulate all aspects of rail in South Africa”.
These rail reforms will work hand in hand with South Africa’s overarching industrial strategy as well.
Current estimates gauge that between Minister Ramokgopa’s energy transmission tower programme and the rail revitalisation, there will be a demand for around 200,000 tonnes of South African-made steel annually.
Creecy added that she, Minister Ramokgopa, and Minister Tau are already in talks about how to use infrastructure projects to further stimulate local economic growth.
A National Rail Master Plan will be released for public consultation later this year.
South African motoring advantages
This rail revitalisation will be advantageous to South African motorists as well as car brands.
Currently, over 80% of all freight payload in South Africa is transported via tarmac, greatly impacting motorists and companies alike.
The huge number of trucks on South Africa’s roads has contributed to accident rates, accelerated the deterioration of major roadways, and driven up the price of goods and services due to being more expensive than rail.
This includes local carmakers such as BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota, and VW, which previously relied on the rail network to ship their products to the ports for export.
Should the rail networks be improved, these brands can once again use rail to ship their vehicles, potentially reducing expenses.
Fewer trucks on the roads will also reduce congestion and make South African motorists’ daily drives less stressful.
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