“We’re not planning on leaving the grain industry,” said Sandile Simelane, communications officer at Transnet Freight Rail, in response to concerns that Transnet is neglecting agriculture and focusing on “other more profitable industries”.
These concerns were triggered by Transnet’s increasing the tariff on grain by between 16,5% and 22%. The increase could not have come at a worse time for the grain industry, struggling with the countrywide electricity crisis, the ailing rand and murmurs of a possible recession, and rising fuel prices. ransnet said the increases are absolutely necessary.
“When Spoornet became Transnet Freight Rail, the company was left to recoup expenses and improve efficiency,” said Andrew Lillie, accounts executive at Transnet Freight Rail. Government is Transnet’s only shareholder, but they don’t subsidise any part of the business. “Transnet maintains its own infrastructure,” said Lillie. In 2004 Transnet embarked on an ambitious, five-year, R34,8 billion turnaround strategy to “restore rail performance and reliability”.
The strategy includes purchasing and modernising rolling stock and replacing and upgrading infrastructure. Transnet is committed to strengthening food security and alleviating poverty, but structural change is needed to succeed. Transnet chief executive Siyabonga Gama and agricultural stakeholders met in January to discuss the changes. Transnet requires better planning and coordination from the grain industry to minimise multiple-train handling and shunting. This could be done by forming maize hubs and getting silos to upgrade existing infrastructure to allow for more than 10 wagons at a siding.
“Some mills are processing at much bigger capacities than before, but many have not increased the size of their silos,” said Albert Swart, senior account executive for grain and timber at Transnet Freight Rail “But it’s still viable for to serve the grain industry.” – David Steynberg
