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Expansion will help relieve pressure on rail sector

KEEPING AFLOAT The South African rail sector needs large rail projects to keep it buoyant, which require substantial capital investment to fund

Photo by Duane Daws

FRANCOIS HEYNS The funding and feasibility of rail projects are a challenge, particularly in current market conditions, where prices of bulk mining commodities are under strain

Photo by Aurecon

11th April 2014

By: David Oliveira

Creamer Media Staff Writer

  

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Owing to poor economic conditions, the South African rail sector is under strain, says engineering, management and specialist technical services company Aurecon railway engineering technical director Francois Heyns.

However, State-owned rail services provider Transnet’s large capital expansion programme could provide the impetus for the sector to recover, he adds.

“The rail sector needs large rail projects to keep it buoyant, which require substantial capital investment to fund.

“The funding and feasibility of these projects are a challenge, particularly in current market conditions, where prices of bulk mining commodities are under strain,” Heyns asserts.

He notes that bulk mining commodities, such as coal and iron, offer the South African rail sector the greatest opportunity for growth into Africa, as they constitute substantial export volumes.

Heyns adds that there is a great need for training and skills development in the rail sector. “Transnet is making a significant effort to develop skills in-house through various programmes and has embarked on a supplier development programme with all its suppliers to further develop industry skills.”

The supplier development programme is a Department of Public Enterprises initiative, supported by Transnet, which aims to increase the competitiveness, capacity and capability of the South African supply base, where there are comparative advantages and potential competitive advantages of local supply. This increase in competitiveness, capacity and capability can be achieved through skills transfer, increasing the local content of items procured and building new capability in the local supplier base.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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