Mr J H van der Merwe (IFP) to ask the Minister of Public Enterprises:
(1) Whether she has been informed of the current long delays that are suffered by exporters when sending goods to harbours by rail; if not, what is the position in this regard; if so,
(2) Whether she is taking any steps with regard to this current incapacity with Transnet; if not, why not; if so, what steps?
Reply:
(1) Yes, the department is aware of the various challenges that are being experienced by exporters sending goods on rail. There is greater shareholder oversight and monitoring of operational performance in ports and rail. Furthermore the Transnet “Quantum Leap” Corporate Plan (2010/11) sets challenging targets for key operational performance indicators such as increasing wagon and locomotive utilization as well as efficiencies in port operations. In rail specifically cable theft has been highlighted as one of the main contributors to delays in transporting goods. Below is a breakdown of the main commodities Transnet transports by rail to harbours for export including details of the high-level operational constraints in each case:
Export Coal from the mines to Richards Bay
Transnet transports this commodity for stockpiling at the Richards Bay Coal Terminal (RBCT), a privately owned terminal. This terminal has 11 shareholders, which include Anglo Operations Ltd, Eyesizwe Coal (Pty) Ltd, BHP Billiton Energy Coal South Africa Ltd, Kangra Coal (Pty) Ltd and Sasol Mining (Pty) Ltd. The average cycle time agreed upon with customers is 59 hours from the mines to the port. However, should the stockpile at the terminal be too high or there is equipment or other problems at RBCT, then delays are likely to occur.
Iron Ore from Sishen to Saldanha
Iron ore is transported from Sishen to Saldanha for export as well as stockpiling. The agreed transit time from the mine to the port is 22 hours. Transnet performs well in terms of the agreed transit time for this commodity, which is consistently achieved.
Chrome from Rustenburg to Richards Bay
The performance of this commodity has been hampered by off-loading capacity which takes two days longer than the agreed cycle time. The port is implementing a project to refurbish and upgrade off-loading equipment.
Containers from Pretoria and City Deep to Durban
The average transit time for containers on the Johannesburg to Durban corridor (NATCOR) is 19 hours. Delays have been experienced on the NATCOR due to theft of overhead copper cable. Containers from Gauteng to Port Elizabeth/Ngqura take 40 hours to reach the destination because of cable theft in Gauteng. The transit time of containers to and from Cape Town is 46 hours, while the design is 36 hours of transit time. The issues which are causing delays, such as, capacity and planning are progressively being dealt with.
Manganese to Port Elizabeth
This commodity is performing in accordance with the agreed transit time of six days. This export channel is constrained because of the lack of rail and port capacity to support growth. Transnet is currently negotiating with key players in the manganese industry to plan a capacity expansion and determine the costs thereof.
Magnetite to Richards Bay
Magnetite is performing well below the agreed transit time of seven days and is therefore running well.
(2) Yes. The department has put greater emphasis on improvements to operational efficiencies in its shareholder oversight role of Transnet. With regards to cable theft the department notes that Transnet faces a major challenge with containers from Gauteng because of constant overhead cable theft. The following actions are being put in place to deal with cable theft:
- Conversion from copper cable to tiger wire
- Increasing the number of security guards in the hotspot areas
- Joint working relationship with the Hawks, National Intelligence Agency and the National Prosecuting Authority which has resulted in the apprehension and conviction of cable thieves
- Recommendation for the amendment to the Precious Metals Act, 2005 (Act No. 37 of 2005) to include copper as a precious metal
Refocusing Corporate Social Investment initiatives to benefit communities along the railway reserves.
Source: Department of Public Enterprises
