Transnet Freight Rail (TFR, a division of Transnet SOC Limited) and Imperial Logistics (a division of Imperial Group Limited) has signed a Memorandum of Understanding (MoU) aimed at exploring multimodal collaboration opportunities within the logistics and transport sector.

The initiative brings together TFR’s efficiency in long haul rail transportation with Imperial Logistics’ road freight logistics, distribution and end-to-end value chain management expertise.  This breakthrough partnership will facilitate joint development of multimodal logistics services in support of Transnet’s ‘road to rail’ strategy.  This will reduce the adverse impact of rail-friendly freight on the national road infrastructure and reduce the cost of logistics for cargo owners throughout Southern Africa.

“We are very excited about the structured way in which we can now engage with TFR as a partner to service our customers” says Cobus Rossouw, Chief Integration Officer of Imperial Logistics. By working together both companies aim to leverage road and rail logistics capabilities to reduce road congestion and greenhouse gas emissions and to lower transport costs for customers. TFR and Imperial Logistics aim to divert freight currently shipped on roadto multimodal combinations with the promise of more cost effective end-to-end solutions. TFR and Imperial Logistics plan to put their forces together to target existing volumes within their groups throughout various industries.

“The MoU makes it possible for TFR and Imperial Logistics to collaborate to benefit the South African economy through resolving previous competitive obstacles,” commented Siyabonga Gama, Chief Executive Officer of TFR.  It’s no secret that as fuel costs increasetransportation of goods is becoming a major cost component of all supply chains and innovative efficient solutions will be welcomed.TFR and Imperial Logistics have the opportunity to make a difference collectively.

This partnership is in line with Transnet’s Market Demand Strategy and ImperialLogistics’ multimodal logistics strategy, both of which aim at improving logistics efficiency to benefit industry and the South African consumers that are serviced by it.