Port and rail system overhaul moves ahead
POOR maintenance, an underperforming rail network and congestion at ports are among the challenges facing Transnet amid ongoing efforts to improve operations and increase port volumes.
This as South Africa's ports underperform all other African ports and lag behind hundreds around the world.
While there have been notable gains in the last few months, the State-owned entity says it is not yet out of the woods as it steps up its recovery plans.
The plan aims to stabilise and improve operational and financial performance by March 2025.
Addressing the media recently, Transnet board chairperson Andile Sangqu said congestion, delays, and increased cost of moving goods into and out of the country have created serious challenges for the economy.
“The efficiency of the South African ports system affects the country’s trade with the rest of the world,” said Sangqu.
“International comparisons strongly suggest South African ports are failing to achieve competitive outcomes.
“All of South Africa’s commercial ports cluster at the bottom of the 351 ports evaluated based on objective data from
shipping lines, and underperform all other African ports included in the survey, such as the Port of Mogadishu in Somalia, the Port of Maputo in Mozambique and the Port of Luanda in Angola,” he said.
This is coupled with an underperforming rail network which has in the last year affected volumes railed to the
Richards Bay Coal Terminal (RBCT).
In its report, Transnet said historic underinvestment in infrastructure and constraints on maintenance affordability have contributed to the resulting decline of network quality.
“Negative externalities, in particular crime and vandalism which includes damage to signalling equipment, have also significantly contributed to a decline in rail network quality,” said Transnet.
"Transnet will need to collaborate with broader rail community and leverage innovative capital to resolve maintenance and rehabilitation shortfall.
"This will enable rail system reform that draws in private sector train operating companies to increase and grow volumes and densities across the network."
The board chairperson says they are cautiously optimistic about the turnaround plans.
"The progress is real, the business is being stabilised, and we are increasingly optimistic about the future," said Sangqu.