Calls to Move Africa’s Freight Back to Railway, Move Could Bring Billions in Investments

• Calls are growing to move freight back onto rail rather than roads, and Transport Minister Fikile Mbalula is supporting it
• Aside from easing congestion on roads, freight through rails will improve safety, and be more environmentally friendly and cost-effective
• Several African countries have been working on the Integrated Transport Strategy and while much progress has been made

PRETORIA - Calls are growing to move freight back onto rail rather than road following several fatal accidents on the country’s highways. Transport Minister Fikile Mbalula is supporting the calls.

Aside from easing road congestion, freight through rails will improve safety and be more environmentally friendly and cost-effective. Several African countries have been working on the Integrated Transport Strategy, and while much progress has been made, there is still a long way to go.

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According to BusinessLIVE, Transnet Freight Rail’s chief executive Sizakele Mzimela said a pilot project between South Africa and Mozambique Ports and Railways is currently running. She said the project results in swifter services which create the capacity to run more cargoes with fewer locomotives.

The initiative allows Botswana, which is landlocked, to access South African ports in a more efficient manner. Transnet Freight Rail and Botswana Rail are working together to fix parts of the railway line which will allow heavy-haul trains travelling from Botswana to reach local ports for export markets, News24 reported.

Currently, Transnet is working with Kenya Rail where the railway network is being updated. It is also participating in a Congo consortium aimed at addressing rail and port infrastructural development opportunities.

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Meanwhile, the African Continental Free Trade Zone (AfCFTA) plans to create a single trading market that will accommodate 1.3 billion people. The initiative will generate trillions.

Transnet gets R5.8 billion cash injection from state, Enoch Godongwana says it will increase efficiencies

In a related matter, Briefly News also reported Finance Minister Enoch Godongwana said government has allocated R5.8 billion to state-owned logistics company Transnet to recover the damage caused by floods and the shortage of locomotives.

He delivered the 2022 Medium-Term Budget Policy Statement (MTBPS) on Wednesday, 26 October. The company has received funding from the fiscus for the first time in decades.

R2.9 billion is specifically for repairing infrastructure damaged by the recent floods, and another R2.9 billion was allocated to purchase spare parts and locomotives from China’s CRRC Corporation. Transnet has been in dispute with the company for years after terminating a procurement programme for new locomotives.

Source: Briefly News