Transnet to help lower food prices | Infrastructure news

A restoration of agricultural rail lines is on the cards as part of Transnet’s R300 billion upgrade plans for railways, ports and pipelines, which will address the huge delays caused by bottlenecks that are affecting the economic growth of the country. According to Grain SA, this will cut down on transport costs for growers and help in lowering food prices.

“We will be over the moon if they can increase the tonnages moved by rail,” Grain SA chief executive, Jannie de Villiers, said last week. “The moment you increase rail potential, it will bring down the average cost of transporting grain in this country. This is also good news for farmers.”

Routes previously abandoned as a result of low volumes will be assessed for upgrade. Transnet is looking at providing rail services to areas where sugar, maize, wheat and fruit were grown.

The percentage of grain transported by rail in South Africa has fallen to 23%from 80%, De Villiers said.

Improved rail options would increase the competitiveness of grain exports, he added. “If we can transport the grain from where it’s produced to Durban port at a cheaper rate, we will be more competitive and that will enable us to… keep our position in international markets. We really look forward to seeing those numbers increase,” he said.

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