The movement of goods from road to rail is starting to take shape, with Transnet Freight Rail (TFR) signing memorandums of understanding (MOUs) with key logistical companies in South Africa.

The first of these was with Imperial Logistics at the inaugural TransAfrica Conference held in Johannesburg. Siyabonga Gama, CEO of TFR, and Marius Swanepoel, CEO of Imperial Logistics, signed an MOU where rail-friendly cargo would be moved off the road and onto rail.

Gama says: “This is an extremely important day for both TFR and Imperial Logistics and one that is long overdue. I believe relationships like this one can do really well for everyone.”

Cobus Rossouw, chief integration officer at Imperial Logistics, adds: “It is a collaborative effort between us and TFR, and has been a long time coming. Prior to this signing it was very important for us to agree to the right principles in which we must make sure we achieve the specific objectives of getting the right freight from road to rail.

“As two different service providers thattraditionally would have competed for a client’s attention,we now have a way we can work together to make sure that we do not end up putting the wrong product on the wrong channel.”

He adds: “We believe we have capabilities that are complementary. At the end of the day it is to serve our clients because that is the reason why we are in business.

“We now have a more formal agreement through which Imperial logistics can take that volume thatis typically referred to as long-distance volume or high volume and through multi-modal and inter-modal solutions best serve our customers.”

Imperial Logistics has operated within multi-modal environments before, but believes that through a more structured agreement with TFR it will be possible to grow the use of multi-modal operations in ensuring its customers goods are delivered on time in the most affordable way.

States Rossouw:“Prior to this signing we agreed upon 10specific projects thatwe will embark on together. The first pallet-friendly containers have already been moved by TFR for Imperial Logistics. This is a great way of moving freight thatis not time sensitive over long distances and as the partnership evolves we will grow this capability.”

Gama says: “It is great being part of this groundbreaking ceremony to celebrate what I believe has been years in the making. Following our initial discussions, we have developed a number of good multi-modal solutions thatwe can both offer our customers.

“TFR is very excited about this partnership as together we can create a much more competitive logistics system in the country. Our long-haul expertise combined with Imperial Logistics’road logistics distribution expertise and end-to-end value chain makes this an exciting partnership.It is also exciting for our carbon footprint – not just for the two companies but on a national basis, as this partnership will have a positive impact in this regard. This is the beginning of a new era and is part of a journey that will bring down the overall costs of logistics.”

Swanepoel concludes: “It has taken us four years to get to the point of signing this MOUand I am convinced that what we have a solution that will suit all our customers.Truck drivers are safe because rail does not provide end to end service, so trucks will remain a vital part of the equation. What we are accomplishing with this partnership is reducing the overall cost of doing business by moving long haul cargo onto rail, thereby reducing the cost of logistics.”