Infrastructure special report
RAIL: Transnet back on track
SA’s rail giant is aiming to play catch-up with a huge investment in its infrastructure spending
In April 2012 Transnet threw down the gauntlet to the road transport industry when it unveiled its seven-year Market Demand Strategy (MDS) aimed at luring general freight traffic back onto rail. This followed over two decades of underspending on rail infra-structure on the back of deregulation of land transport in 1988, which had devastated Transnet’s general freight traffic market share. It had left road hauliers responsible for moving 72% of the over 780Mt transported annually. Transnet is now aiming to play catch-up with an infrastructure spending programme that calls for the investment of R300bn between 2012 and 2019. This is almost treble the R118bn spent on infrastructure in the seven years to 2012. "The capex is all about increasing efficiency," says Michael Asefovitz, Transnet Freight Rail’s senior communications manager. Transnet is aiming for big returns as ambitious volume growth targets set by its MDS in 2012 indicate. Targeted for the biggest increase is general freight...
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