South African Business 2020 edition

OVERVIEW
Several airports are possible
future regional freight nodes:
Wonderboom Airport in Pretoria,
Polokwane Airport in Limpopo and
Mahikeng Airport in North West
Province.
The South African Department
of Transport has several agencies
and businesses reporting to it: Air
Traffic and Navigation Services
Company, Airports Company
South Africa (ACSA), National
Transport Information System,
Road Accident Fund, South African
Civil Aviation Authority, South
African Maritime Safety Authority
(SAMSA), the South African
National Roads Agency Limited
(Sanral) and the Passenger Rail
Agency of SA (PRASA).
Rail
Transnet is the state-owned
enterprise focussed on transport
and logistics. It comprises
Transnet Freight Rail, Transnet
Engineering, Transnet National
Ports Authority, Transnet Port
Terminals and Transnet Pipelines.
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.
The major rail haulage lines
are the manganese line from the
Northern Cape to Port Elizabeth;
iron ore from Sishen in the
Northern Cape to the Port of
Saldanha; and from the coal fields
of Mpumalanga to Richards Bay.
More than 55-million tons is regularly
transported along the former and upwards of 70-million tons can
travel annually along the latter.
A total of 600 new passenger trains will be added to Metrorail’s fleet
at a cost of R51-billion. Transnet Freight Rail has ordered 1 064 diesel
and electric locomotives from four suppliers.
Sheltam Group is expanding its services beyond rail services.
A new lease company (for rolling stock) and an investment company
(focussed on rail infrastructure) underpin the group’s African
ambitions.
Logistics
South Africa’s largest agricultural company has signed an agreement
with Transnet to partner in upgrading grain facilities at two ports. East
London and Durban will receive R100-million revamps as part of a 15-
year tender won by Afgri.
The East London Grain Elevator is operating well below capacity,
processing about 90 000 tons a year. At full capacity, the elevator could
handle as much as 720 000 tons. Durban’s other two agricultural terminals
are currently run by Bidvest and SA Bulk Terminals. Transnet is
hoping that the partnership will help it towards reaching its goals in
its road-to-rail strategy.
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 Nkomazi SEZ near the border with Mozambique in Mpumalanga
has similar advantages as it forms part of the Maputo Development Corridor.
Investment in improved infrastructure is being made at all of South
Africa’s ports and Special Economic Zones are in place at four of them.
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.
ONLINE RESOURCES
Airports Company South Africa: www.acsa.co.za
National Department of Transport: www.transport.gov.za
Road Freight Association of South Africa: www.rfa.co.za
South African Association of Freight Forwarders: saaff.org.za
South African Heavy Haul Association: www.saheavyhaul.co.za
87 SOUTH AFRICAN BUSINESS 2020