R/€ = 15.35Change: -0.03
R/$ = 14.45Change: -0.03
Au 1069.63 $/ozChange: 3.48
Pt 840.50 $/ozChange: 2.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Aug 07, 2014

Transnet Freight Rail signals bold plans for growth

TFR CEO Siyabonga Gama
Photo: Duane Daws
TFR CEO Siyabonga Gama
Cape Town|DURBAN|Port|Prince Alfred Hamlet|Africa|CoAL|Industrial|Locomotives|rail|Road|Rolling Stock|rolling-stock|System|Systems|Tourism|Transnet|Transnet Freight Rail|transport|Africa|South Africa|Port Of Ngqura|Electricity|Energy|Improved Braking Systems|Logistics|Manufacturing|Oil Prices|Products|Systems|Truck Travel|Alfred Hamlet|Infrastructure|Siyabonga Gama|Prince Alfred Hamlet
Port||Africa|CoAL|Industrial|Locomotives|rail|Road|Rolling Stock|rolling-stock|System|Systems|Tourism|Transnet|transport|Africa|||Energy|Logistics|Manufacturing|Products|Systems||Infrastructure||
cape-town|durban|port|prince-alfred-hamlet|africa-company|coal|industrial|locomotives|rail|road|rolling-stock|rolling stock|system|systems-company|tourism|transnet|transnet-freight-rail-company|transport|africa|south-africa|port-of-ngqura|electricity|energy|improved-braking-systems|logistics|manufacturing|oil-prices|products|systems|truck-travel|alfred-hamlet|infrastructure|siyabonga-gama|prince-alfred-hamlet-province-or-state
© Reuse this

Transnet is hoping to attract R100-billion from private investors to help streamline the transport system and make it more efficient, says Transnet Freight Rail (TFR) CEO Siyabonga Gama.

Transnet is investing R312-billion over the next seven years, much of it in rail.  It’s also turning to the private sector to help develop efficient and cost-effective supply chains.

“The private sector sits on the kind of cash we’d like to leverage,” Gama told journalists in Cape Town.

He said there were many opportunities, with investment in rapid loading facilities being just one of them, and funding a link to coal mines in the northern Waterberg region being another.  

Transnet’s seven year Market Demand Strategy requires TFR to shift rail-friendly freight traffic from road to rail. The fluctuating international oil prices, high carbon intensity and high costs of truck travel were driving demand. 

Gama said it was vital to create capacity ahead of demand and grow both the rural and regional economies. 

Following years of under-investment, Gama said TFR had been upgrading its rolling stock fleet and infrastructure network.  It had substantially upped its capital investment since 2005, with a sharp eye on moving freight from road to rail. 

“We’re working hard at modernizing our fleet. We have 29 different kinds of locomotives and want to standardize it to four,” said Gama.

He said this had several benefits, including standardizing spares and saving electricity, as the new dual-voltage locomotives would be far more energy efficient than the existing ones.

Gama said TFR planned to replace some of its ageing stock with 1 400 new locomotives within the next four years. 

“We’ll also take the 20-year-old locomotives through mid-life refits.”

The plan includes new wagons which will have greater carrying capacity and improved braking systems.

Gama said an important initiative is to replace branch lines, many of which had been abandoned in rural areas. TFR was hoping to attract private sector investment for some of these.

TFR said it had identified 20 branch lines, including in Prince Alfred Hamlet and the George to Knysna line. Some of these could be developed for tourism.  

Gama said other plans included upgrading the manganese line to the Port of Ngqura.

“Eighty percent of the world’s manganese reserves are in South Africa. We can become more competitive in the market if we have the correct infrastructure.”

Unlocking economic opportunities in North West province, as well as developing the Durban-Free State-Gauteng logistics and industrial corridor were also on the radar.

Gama said he considered the biggest flows for growth from the Cape Corridor to be intermediate manufacturing, finished palletised goods and agricultural products.

TFR has made strides in upping its cargo load.

“We are making a very deep cut in terms of the container market,” said Gama.

He said TFR handled around 150 000 TEUs (20-foot equivalent units) in 2005. This had shot up to 1-million by this year, with 25.2% growth in 2013/2014 compared with the previous financial year.

While conceding bottlenecks and delays in some areas, Gama said TFR was on an upward trajectory and had bold goals.

“By 2020 we could become one of the top five railways in the world,” he told journalists.

He said there had been a shift in mindset at Transnet.

“We are beginning to attract a cadre of people that ten years ago would not want to work at Transnet. We want to become an employer of choice.”

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
Other Transport & Logistics News
A Paramount Mbombe 6 armoured infantry vehicle undergoing winter trials in Kazakhstan
South African private-sector defence group Paramount announced on Tuesday that it had started production at its new armoured vehicle plant in the Central Asian country of Kazakhstan. The start of production was marked by a visit to the plant by Kazakh President...
Up to 60 people were injured when a substation near Pinedene train station in Centurion exploded on Tuesday morning. ER24 spokesperson Pieter Rossouw said initial reports indicated it was a train crash, but this was incorrect.
Zambia expects to clinch $1-billion in Chinese investment and loans at this week's China-Africa summit in Johannesburg, a presidential spokesperson said on Tuesday. Presidential spokesperson Amos Chanda said Zambia was expected to conclude deals with China in...
Article contains comments
Article contains comments
Latest News
Construction company Murray & Roberts (M&R) on Tuesday said board members Mahlape Sello and Royden Vice would be excluded from any discussion and documents relating to the investigation of the October collapse of a support structure of a pedestrian bridge being built...
The Nuclear Industry Association of South Africa (Niasa) is not sitting by idly while National Treasury and the Department of Energy mull over the various options for the country’s controversial 9 600 MW nuclear build programme. While Energy Minister Tina...
While a resurgence in manufacturing in Africa has been popularly touted as the silver bullet that will accelerate the continent’s economic growth prospects, The Economist management editor and columnist Adrian Wooldridge has suggested that Africa’s industrial...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96