R68 billion budgeted for rail

Transnet Freight Rail (TFR) chief executive Siyabonga Gama announced last week that it will set aside more than R68-billion to improve infrastructure over the next three years.

Northern News spoke to TFR spokesperson Sandile Simelane who said TFR will develop an operating schedule for freight trains and improve networks and signalling to meet the rapidly increasing demand for railway freight.

On whether the state owned logistics group would expand its services in the Waterberg, he said that a Memorandum of understanding was signed with the Limpopo province and that feasibility studies are being done to determine whether TFR would build a heavy-haul line in the Waterberg area. Northern News reported last week that the iron ore project developer Ferrum Crescent is eagerly awaiting an announcement by TFR on whether there will be adequate rail and road capacity in the area.

With Exxaro, Res Gen and Sekoko all owning mining rights in the area it would seem logical to expand rail capacity in the area.

Simelane said, however, that building new rail is a huge capital outlay and that careful planning and a thorough feasibility study is needed.

“We are not influenced by companies who are announcing to the world that their mining activities depend on TFR. We need to know that if we build a railway, that it will be used sufficiently to prevent capital wastage.”

According to an article in the Mail and Gaurdian last week TFR has a 20 247 kilometres rail network, of which about 1 500 kilometres are heavy-haul lines. The network connects the ports to inland areas of South Africa and also to the rail networks of the sub-Saharan region.

Since 1994, there has been no commitment at all to invest in rail infrastructure.