Freight firms reject energy projects

Road freight companies that transport millions of tonnes of coal to Eskom power stations annually called on President Jacob Zuma on Wednesday to reverse a decision to press ahead with additional renewable energy projects.

Coal Transportation Forum chairman Steven Mokwana said if the president failed to do this, up to 1-million direct and indirect jobs would be at stake.

Truck drivers belonging to 52 affiliates of the forum disrupted traffic in Pretoria as they converged to march on the Union Buildings in protest against Zuma’s announcement that the government was committed to the Independent Power Producer Procurement Programme.

The South African Renewable Energy Council said the reduction of coal use by 10-million tonnes per annum was state policy and global experience showed that renewable projects created more jobs.

Energy analyst and director of QED Solutions Dirk de Vos said that reduced demand would be likely to hit the coal road haulage sector.

While some externalities are not borne by Eskom or directly by electricity users — in terms of the cost of maintaining road infrastructure — the cost of road freight contracts were above those of contracts for fixed coal, De Vos said.

“You can go into the merits or demerits of that, but when you are trying to cuts costs … the most expensive costs have to go,” said De Vos.