South African Business 2022

OVERVIEW Transport and

OVERVIEW Transport and logistics The private sector is set to play a bigger role in transport. SECTOR INSIGHT Budgets for spending on public transport are increasing. One of the two new helicopters purchased for the transfer of pilots at Richards Bay and Durban. South Africa was the first country to use helicopters to transfer pilots. Half of the team of 26 pilots are women. Credit: TNPA When the state tried to revive branch rail lines a decade ago, the sticking point was who was to pay for the infrastructure upgrade. An announcement in 2021 by the Minister of Public Enterprises Pravin Gordhan that concessions were back on the table was accompanied by the news that only fully-repaired lines were under discussion, greatly reducing the risk for potential private partners. Bids are to be made on four lines initially, with state utility Transnet to be responsible for maintenance. The private operators will pay a fee every time they use the line. Minerals and agricultural produce in remote areas are likely to be the first target for private companies looking to assist the state in moving a greater proportion of the country’s freight from road to rail. Another area of proposed private sector participation with the Transnet group is in the running of the nation’s ports. Congestion and under-investment have meant that South Africa’s ports are not as competitive as they should be. A start has been made in that South Africa’s largest agricultural company has signed an agreement with Transnet to partner in upgrading grain facilities at two ports. However, there are much more ambitious plans in the offing. Transnet is calling for bids from global container terminal operators for the ports of Durban and Ngqura. The creation of Transnet National Ports Authority (TNPA) as an independent subsidiary, which took place in June 2021, is designed to assist in the process. Large amounts of money are to be spent on various forms of public transport in the short term. Investments in rapid transit systems in the big metropolitan areas of Johannesburg and Cape Town are now being followed by other South African cities such as Polokwane and Rustenburg, the Gautrain is looking to expand its routes, a taxi infrastructure programme is in place in some cities and the Passenger Rail Agency of South Africa has a plan to increase and upgrade its rolling stock. In Limpopo’s provincial capital of Polokwane, operations of the Leeto La Polokwane public transport system were launched in Transport Month, October 2021. In the North West, the Rustenburg Rapid Transport Project (Yarona) aims to integrate busses, taxis and improved pedestrian access throughout the city. The South African Department of Transport has several agencies and businesses reporting to it: Air Traffic and Navigation Services Company, ACSA, National Transport Information System, Road Accident Fund, South African Civil Aviation Authority, South African Maritime Safety Authority (SAMSA), South African National Roads Agency Limited (Sanral) and Passenger Rail Agency of SA (PRASA). Logistics Transnet Freight Rail (TFR) has had a new CEO since April 2020. Siza Mzimela, with a background in airlines and logistics, wants to divert road freight to rail, which currently attracts just 20% of South Africa’s general freight. SOUTH AFRICAN BUSINESS 2022 66

FOCUS Durban is South Africa’s port, with increasing volumes of containers putting pressure on logistics operations. Credit:TNPA One of her goals is to find a South African manufacturer who can produce railway lines. Transnet Freight Rail’s operations represent about 80% of Africa’s rail infrastructure. With 25 000 employees TFR has specialist divisions for hauling coal and iron ore together with a general freight division which transports everything from grain to chemicals. While there is concern about the performance of South Africa’s ports in getting goods in and out in the best possible time, a record was set in 2020 by Transnet Freight Rail in transporting 66 train lots and 3 662 FEU reefer containers from Limpopo and Gauteng to the Port of Durban. The Citrus Growers Association was very happy about this, which represented a 20% on the previous year’s volumes and was some way towards the target of 15 000 reefer containers. A mandatory automated truck booking system has been introduced at Durban Container Terminal Pier 1 and Pier 2, while the Grindrod, FPT and Bulk Terminal depots have also piloted their own booking systems. Although Transnet Port Terminals and Transnet Freight Rail are vital to the smooth running of the loading systems, private operators ONLINE RESOURCES African Rail Infrastructure Association (ARIA): www.aria.org.za Airlines Association of Southern Africa: www.aasa.za.net South African Heavy Haul Association: www.saheavyhaul.co.za of storage facilities and trucking companies also need to synchronise their operations. In Cape Town, efforts to work on decongestion include the City of Cape Town, the Cape Chamber of Commerce and Industry and the provincial government. The building of the Musina- Makhado Special Economic Zone (SEZ) will boost Limpopo’s role as a transport and logistics hub. The Musina Intermodal Terminal is 15km from the busy Beit Bridge border crossing. It will boost efforts to move cargo from road to rail. The Maputo Development Corridor is Africa’s most advanced spatial development initiative. Run by the Maputo Development Corridor Logistics Initiative (MCLI), the corridor runs from near Pretoria in Gauteng to Maputo in Mozambique. The Harrismith Logistics Hub at the Maluti-A-Phofung SEZ on the N3 is an inland port that can handle cargo containers and shift cargo from road to rail, reducing congestion and costs. Several airports are possible future regional freight nodes: Wonderboom Airport in Pretoria, Polokwane International Airport in Limpopo and Mafikeng Airport in North West Province. South Africa has 22 000km of railway lines and 747 000km of roads, 325 019 heavy-load vehicles and the road freight industry employs 65 000 drivers. The logistics and courier market is worth R10-billion. There are 135 licensed airports in the country, 10 of which have international status. ■ 67 SOUTH AFRICAN BUSINESS 2022