Reply by Minister of Public Enterprises, B Hogan, on questions posed in the National Assembly for written reply

Question No. 148

Mr KA Sinclair (Congress of the People, Northern Cape) to ask the Minister of Public Enterprises:

Whether her department is in discussion with any state owned enterprises (SOEs) to increase the railway capacity; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

Yes. Transnet Limited, as the owner and primary operator of South Africa's freight rail network, is committed to providing rail capacity ahead of demand.

As the state owned enterprise responsible for rail infrastructure investment, Transnet has developed detailed infrastructure plans based on forecast modelling that projects the expected increase in demand for freight on the main rail corridors for the next 30 years.

The table below indicates Transnet's commitment to increasing rail capacity for the general freight business (GFB), the export coal and export iron ore volumes over the next five years:

Sector (mt)

* 2010/11
General freight business: 80.7
Export coal: 67.0
Export iron ore: 50.3

* 2011/12
General freight business: 89.7
Export coal: 70.0
Export iron ore: 53.6

* 2012/13
General freight business: 97.0
Export coal: 73.0
Export iron ore: 59.9

* 2013/14
General freight business: 102.4
Export coal: 77.0
Export iron ore: 60.7

* 2014/15
General freight business: 107.7
Export coal: 81.0
Export iron ore: 60.7

Transnet will be investing R54.6 billion of its total five year capital investment plan of R93.4 billion in rail infrastructure and in acquiring and upgrading rolling stock (with R52.8 billion being in respect of Transnet freight rail's capital expenditure and the remainder being in respect of Transnet rail engineering's capital expenditure). The capital investment will meet the increase in freight demand expected on the main rail corridors.

Source: Department of Public Enterprises (http://www.dpe.gov.za/)

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