Honourable Ministers from Southern African Development Community (SADC) countries
Permanent Secretaries
Director-Generals and Heads of Transport
The President of the Southern African Railways Association
Southern African Railways Association(SARA) Board Members
Chief Executives of the SADC Railway Companies
Distinguished guests
Members from the media fraternity
Ladies and gentlemen
Ladies and gentlemen, I am pleased to address you on this important occasion which is in pursuit of taking the lead in the promotion and development of trade, movement of goods, passengers and economic growth in Africa through our rail infrastructure networks. It is our mandate to ensure that we develop the rail industry in the Southern African Development Community (SADC) and Africa, by putting in place strategies for the improvement of the viability of the railway transport business. This we will do through the provision of a safe, integrated, cost-effective and predictable seamless service to all domestic and international customers and commuters.
It is also our competence to advocate for fair and sustainable competition among all providers of rail surface transport in the region and to exploit interconnectivity and achieve cross-border operability and efficiencies.
In addition, we need to promote regional and continental rail network connectivity where rail links do not exist and to strengthen current interconnections through targeted activities and funding. Furthermore we have to enhance alliances for the exchange of technical information, strategies, skills development and training and also develop, enhance and harmonise policies, governance and business processes.
The economic role of railways has always been to provide a platform through which the movement of people and goods is seamless and does not hinder economic participation and instead enhance vibrant economic production and trade.
Our access to local and international economies heavily relies on the ability of the rail system to be responsive and flexible to global changes particularly in demand for goods. Therefore our railways must at all times provide companies with the ability to compete globally irrespective of changes in the commodities under trade.
On a social level railway transport provides communities with access to other communities, families and friends and builds mobility and social cohesion. These interactions might be economic in nature from the view point of passenger service, but also play a crucial role in the social wellbeing of our people.
The theme of this conference: "Revitalising Railway Services through Innovation in Southern Africa" points to the regional railways' objective to modernise and improve their performance for the benefit of all. Included in the objectives of this Conference are; raising awareness of stakeholders on new initiatives by rail aimed at improving railway services.
We also need to promote integration of rail transport networks and to develop industry innovative solutions to address service demands for clients and promoting rail industry growth in Southern Africa.
State of rail in Africa
It is a fact true that colonial rule was a root cause in some African regions, of the establishment of the so-called 'Cape Gauge' which is today not helpful in our economic endeavours. For instance, about 17 African States have about 449 614kms of the "Cape Gauge" - with South Africa owning approximately 20 324kms of this network.
In other words, the Cape Gauge has to a large extent stood in the way of integrating railway systems in Africa. I would suggest that new and future developments be considered on the standard gauge and that serious work be done to estimate the cost of putting in new networks on this gauge.
Railway challenges in Africa
During the 2011 Africa Rail Conference and Exhibition which was hosted in Johannesburg recently, international rail industry leaders and experts provided insights and solutions to operators, developers, governments and investors to assist them in their daily challenges.
These challenges include insufficient and declining capacity leading to failure to cater for growing demand; poor maintenance of infrastructure and equipment; inefficiency of railways and failure to adapt to technological developments.
To date, challenges related to the unavailability of competent railway experienced resources with proven track records of delivery and understanding of the nature of the railway industry remain. We also have challenges of appropriate railway technology that matches the vision of the African economic agenda in providing mobility and reducing environmental impact. Issues of theft and vandalism, very old infrastructure and skills management and capacity are also a cause for concern.
During the Africa Rail Conference, attendees and global industry leaders were able to share their understanding and visions for operating safe, efficient and viable rail systems.
The rail industry will continue to play a prominent role in the transformation of any society. Industry players therefore need to not only meet the expectations of customers and their public but also operate sound business infrastructures to ensure a sustainable economic impact. As we work together to improve on these areas we should also look at the following important aspects:
- Elimination of missing rail infrastructure links.
- Development of policies and instruments to bring private sector participation in the railways.
- Identification of main African infrastructure integration projects in order to achieve the objectives of the Millennium Development Goals (MDGs) and the Almaty Programme of Action.
- Commitment to source funds to support African Railways; and
- A clear articulation of the role of the state in driving factors that might contribute to the current state of the African rail network. This will help in the assessment of previous shortcomings as well as inform future reform of the African rail industry.
Proposed solutions
As SARA we also need to be a catalyst for regional, continental and global growth by promoting alliances with other modes of transport where the opportunities exist in order to achieve synergy and provide total logistical solutions. We must be able to define and identify rail Corridors that would constitute the Pan-African Railway Network to facilitate trade and economic integration in the Continent.
Key corridors are a prerequisite for the regional integration and the removal of the missing links. To a considerable degree, this process is already under way with some of the milestones already attained under the New Partnership for Africa's Development(NEPAD) Short Term Action Plan such as;
- The acceleration of the Trans Kalahari Corridor between South Africa, Namibia, and Botswana which is key to the integration of the SADC region.
- With this project, preliminary work is already underway to begin the exploration of the economic and financial feasibility of the rail line between Gobabis in eastern Namibia across the Kalahari to the Botswana Railways network joining South Africa.
- The Maputo CFM and South Africa's Transnet Freight Rail have also formed a strong relationship with a view to strengthening ties and operations along the Ressano-Garcia corridor route.
- Talks with Lesotho have already started with the long-term goal to establish a railway line linking Lesotho with the port of Durban and Port Elizabeth.
- This is in line with the Almaty programme of action to improve connectivity and access for landlocked countries.
- NEPAD is also supporting the concessioning of railways in Kenya, Uganda, Tanzania, Zambia and Swaziland in the form of technical assistance, regulatory capacity building as well as the provision of transaction advisory. Some of the projects include the physical rehabilitation of railways, such as:
- Malaba - Kampala railway
- Port Bell and Jinja wagon ferry terminals rehabilitation
- Nakuru - Kisumu rail section rehabilitation
- Dodoma - Tabora - Mwanza: track rehabilitation and upgrading of signalling systems, as well as
- the Nacala Corridor Railway.
In addition, there are feasibility studies being undertaken for,
- Railways interconnection for West and Central Africa
- Brazzaville - Kinshasa rail/road bridge, as well as
- the rehabilitation of the Benguela Railway Corridor system between Angola and DR Congo.
In this regard our key strategic challenges that must be met to achieve these goals must speak to:
- A strong harmonisation and rationalisation of Africa cross-border rail transport and trade regulations
- Improvements in border post management systems
- Encouragement of increase in joint ventures in rail infrastructure, and
- Stronger investments in rail infrastructure, using a corridor approach.
Ladies and Gentlemen let me outline for your consideration some of the drastic steps that have to be undertaken to energise us into moving these processes at a rapid pace:
- There is an urgent need for the establishment of Country based Rail Commuter and Freight Forums in order to cater for equitable dual use of rail for both passengers and freight.
- We have to undertake an all-encompassing audit of rail operations throughout Africa in order to unravel the nuts and bolts of our rail operations.
- Africa needs stronger rail economic regulatory mechanisms to ensure the development of infrastructure and operations.
- There also has to be a coordination of operating and technical practices of rail service providers and the developing of benchmarks for service standards and maintenance of infrastructure and equipment.
- There has to be strong knowledge sharing, exchange of ideas, expertise and information towards joint problem solving and the maximisation of rail transport efficiencies.
South Africa: Long distance transit challenges
In South Africa with regard to long distance transit systems, we have faced three major challenges.
These are:
- to support tourism services between our major economic hubs, such as Johannesburg-Durban
- an inherited migrant labour system. We are still having massive worker movements every weekend between cities and rural areas
- to support the emergence of 'mega-city' dynamics, such as Johannesburg-Tshwane, Durban and Pietermaritzburg.
We are seeing a massive increase in long-distance travel in South Africa. The bus and taxi sectors have overtaken the rail sector over the past 20 years.
Low cost airlines have also entered the market with serious impact on passenger numbers. The cost structures are putting a strain on bus and taxi revenue streams. The system requires a mass-mover and that is the rail sector.
In the South African context, we have a specific challenge with regard to the movement of workers between Tshwane and KwaNdebele. Workers travel for 120 to 180 kilometre single journey trips at an average cost of R7 500 per passenger per month. This is costing R350 million per year in state subsidies. This has increased by 100% over the past 10 years. This is clearly not sustainable.
Current initiatives in South Africa
As South Africa, we have embarked on a number of information systems projects that may help shape and inform how Africa develops its information databases and databanks particularly to facilitate trade and economic development.
- We have established the National Freight Information Systems in order to integrate all existing information into a single information system that will house all freight information in the Republic of South Africa.
- We have embarked on the implementation of a National Transport Master-plan 2050 and have also established a Freight Databank that consolidates all cargo statistics into one single databank so as to develop origin and destination pairs and to provide cargo owners and service providers with cheaper route options.
- We have established the National Corridor Performance Platform Measurement (NCPM) in order to measure performance of various supply chains in the identified corridors.
- We have successfully established the Rail Safety Regulator in order to promote safe railway operations and to facilitate a modern, flexible and efficient regulatory regime to ensure the enhancement of safe railway operations, and to promote the harmonisation of the railway safety regime in the SADC region.
It is our view that in the 21st century these challenges can only be addressed through rapid rail systems. The rapid rail industry is a system of the future here in Africa and globally. We have engaged with the various governments internationally on the studies pertaining to the High-Speed Rail in South Africa. In this regard, the following four main pillars are of critical importance:
- improvements of our urban, rural and long distance transit infrastructure and systems;
- leveraging of local and global funding and transport technologies through strategic partnerships and alliances;
- development of local industries through these sequenced transport delivery processes; and
- Building institutional, regulatory and project management capacity within the sector.
Sustaining rail investments in South Africa
Furthermore, over the past five years, we have invested over R40 billion in passenger rail infrastructure and services in South Africa. This involved R23billion in the Gautrain project and almost R13 billion on rehabilitating Passenger Rail Agency of South Africa (PRASA) coaches and signalling systems.
A sustained programme over a 20-year period will create certainty and will enable input manufacturers to re-tool their factories and therefore create sustained local industrial activities. Part of this process is to identify critical inputs and identify through a cost-benefit analysis those we can develop locally, based on our competitive advantage and creation of local economies of scale. This is important for the creation of sustainable jobs and the growth of our economy.
Ladies and gentlemen, our hope is that this conference opens a new Chapter in the development of rail transport in Africa. Our discussions and interventions must wake up Africa from lagging behind to leading the development of our economies through rail. I therefore take this opportunity as a very serious working engagement of the way we want to drive our future and a sustainable rail network in Africa.
I thank you.
