Following his address at the BRICS 2024 summit in Kazan, Russia, President Cyril Ramaphosa has reemphasised the urgent need to upgrade South Africa’s rail infrastructure in order to meet global trade imperatives. While improved public rail transport forms part of the Government of National Unity’s social upliftment agenda, it is the creation of a technology-powered rail-based supply chain that will elevate South Africa’s economy to a leading position in the emerging ‘Global South’ marketplace.
In a ‘From the Desk of the President’ newsletter dated 28 October 2024, president Ramaphosa states: “Goods that are produced by our workers need to move from mines, factories and farms to our country’s markets and international markets through our ports. People need to be transported to workplaces, clinics, hospitals and schools. When our transport system works well, then the cost of doing business is lowered and our country’s products and services are more competitive.”
A particular area of focus for the GNU is the development of rail to a point where it becomes “the backbone of transport in South Africa” which, says Ramaphosa, is a process that is beginning to show positive results, including a 300% increase in passenger rail traffic over the last 18 months.
Importantly, it is the progress of the National Logistics Crisis Committee (NLCC) that is of great concern to truckers, national supply chain stakeholders and consumers alike.
Ramaphosa explains: “Last year we set up the NLCC to address our logistics challenges, particularly in a number of goods transportation corridors. Transnet, business and labour are working together to increase the volume of freight that is carried on our rail corridors to be transported to our ports. The NLCC is supporting the implementation of the Freight Logistics Roadmap which covers areas such as the security of the rail network, operational improvements and capital investment.”
Public-private partnerships without losing ‘State control’
Ramaphosa adds that Transnet will finalise a Network Statement by the end of 2024, which will facilitate access by third-party operators to the nation’s rail network. “This will help to increase the volume of goods carried by rail. By 2029, our rail lines need to be transporting at least 250 million tonnes of freight a year,” he says.
He adds that work is underway to develop a National Rail Masterplan that will lay out the future for rail in South Africa, including “high speed rail over long distances between centres.”
Ramaphosa says, “The achievement of our ambitious targets will require considerable investment in infrastructure, rolling stock and signalling. We will need to make use of new technologies, including artificial intelligence, in areas like cargo tracking, passenger ticketing and securing critical infrastructure.
“The Government alone will not be able to carry the scale of the investment needed. That is why we are working to mobilise private sector investment in rail and port operations, while ensuring that the infrastructure remains State-owned.”
While the regeneration of rail infrastructure and digitisation of port management aims to optimise transport efficiencies for goods and passengers, Ramaphosa also stresses the environmental benefits of establishing a world-class rail network:
“Not only does the development of rail reduce the cost and improve the reliability of transport for both people and goods, it also makes an important contribution to the reduction of our carbon emissions. Together with support for new technologies like electric vehicles and hydrogen fuel cells, we can make transport in this country far cleaner and more environmentally sustainable,” the President concludes.
Editor’s Footnote: While we all accept that inter-modalism will be in the interest of all and thus the focus on improving a dilapidated railway system is imperative to achieve this, FleetWatch would also like to point out to the President that the road freight sector has played a pivotal role in keeping the wheels of the South Africa economy moving while Transnet – harbours and rail – were destroyed through mismanagement and the plundering of resources. It would be well, therefore, for the President to put on the planning table some outlet strategy for transporters who will no doubt be adversely affected – especially in the commodities arena – should the plans for the revitalisation of rail be realised. Don’t forget Mr. President, those who delivered the bread to the table for all South Africans while others were ‘eating’ away from the table for themselves alone.
