President of the Railroad Association Elvin Harris conceded that the relationship between Transnet Freight Rail (TFR), its other divisions, and the forwarding and clearing industry hasn’t always been the best.

During a discussion on integrated planning and infrastructure development at the annual SAAFF Congress, he said Transnet and SAAFF were at the start of a new relationship, hinting that the rail operator would like to get more involved in the 2016 event.

Harris said Transnet was making investments to put the efficiencies back into the country’s rail system, adding that parastatal wished to be an important cog in the country’s logistics and supply chain wheel.

According to Harris, rail needs to have greater responsibility in the nation’s freight transport tasks. Transnet has recently been moving around 15% of total freight tonnage, he said, seeing good growth since the commencement of its seven-year market demand strategy (MDS). He explained that Transnet’s investment drive has seen huge spikes and the number of trains being run has, over the last few years, increased from 850 to 1 400 trains per day.

These trains were also running more efficiently and boasted reduced turnaround times. Harris added that there was a need to reduce the costs of logistics, which would reduce the overall cost of doing business in South Africa.

Transnet has been working closely with third party logistics service providers and with the motor industry, he revealed. While the turnaround of the state-owned rail operator was on track, it had gone through a lot of pain and was still licking some of its wounds, he said half-jokingly.

In a cautionary conclusion, Harris said it was going to be tough to sustain the rate of spending the original MDS plan envisioned, and so there may be some reductions due to expected revenues not having materialised. Still, the company has been driving internal operational efficiencies hard and has invested in suitable rolling stock, he said.