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Sensible Planning between Road, Rail & Ports
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Sensible Planning between Road, Rail & Ports

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Presented by: Gavin Kelly at the 2009 Railways and Harbours Conference in Cape Town.

Presented by: Gavin Kelly at the 2009 Railways and Harbours Conference in Cape Town.

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Sensible Planning between Road, Rail & Ports Sensible Planning between Road, Rail & Ports Presentation Transcript

  • Gavin A Kelly Technical & Operations Manager 05 March 2009 Sensible planning between road, rail and ports
    • Freight (goods and passengers) playto the following rules:
    • National Freight Logistics Strategy (NFLS): Circa 2005
    • National Transport Master Plan 2005 – 2050 (NATMAP): Circa 2008
    The Rules
    • “ The freight system in SA is fraught with inefficiencies at system and firm levels. There are infrastructure shortfalls and mismatches; the institutional structure of the freight sector is inappropriate…..; the skills base is deficient and the regulatory frameworks are incapable of resolving problems in the industry.”
    • Problem Statement: NFLS, pg04: 2005
    Where we are
      • “ Key freight areas impacting negatively on the economic and social development of SA; which if left unaddressed would impose major restraints on the countries ability to deliver economic development and jobs in the medium to long term at a rate that is consistent with our requirements”
    The Effect
      • "A significant component of the National Freight Logistics Strategy deals with creating more space for the private sector to play a meaningful role in all aspects of the freight system“
      • JT Radebe, Minister of Transport, Sept 2005
    The Mission
      • Currently we move 900 mil tonnes per year across the various networks
      • Freight that moves into the hinterland faces difficult challenges due to the inefficiencies of the port and rail environments
      • NFLS: 2005, pg 03
    The Reality
      • Transportation systems are characterized and riddled with both intra and inter-modal inherited and / or acquired problems.
      • To this effect various transport components / elements of current transport systems are operated and regulated by different governmental agencies and private operators at all three spheres of government.
      • NATMAP: April 2006, pg 08
    The Hurdles
      • Our transport systems are neither demand responsive nor cost effective.
      • In many cases, there is little coordination amongst those responsible for the operation of the various components / elements of both rural and urban transportation systems.
      • NATMAP: April 2006, pg 08
    The Hurdles
      • Currently transport costs is on a scale from 14% through to roughly 38%.
      • The general transport cost in other economies is no higher than 10% (but most economies work in single figure boundaries)
    The Hurdles
      • The most critical impact has been felt in the rail network. Unofficially South African Railways rolling stock is approximately 35 years behind current state of the art technologies.
      • We have seen a steep decline in the reliability of the ageing rolling stock fleet and the emergence of serious safety issues resulting from poor condition and technical obsolescence.
      • NATMAP: April 2006, pg 09
    Rail
      • Almost every respondent believes that the state-run rail network is either below average or poor in its performance.
      • Business Day: June 21, 2005
    Rail
    • Continuous growth in road freight (roughly 7% per annum since 2005);
    • Road vs Rail – an empty debate (as rail cannot play the role it needs to);
    • Rising costs of transport (road user charges, toll roads, fuel levies & additional taxes);
    • Strain on efficiencies and delivery times (more and more difficult due to congestion);
    • Transportation in smaller quantities – very large growth in vehicle market (between 14% and 24%)
    Road
    • South African coastline: 3 500km
    • Seven major ports
    • Opportunity for coastal shipping, which is an economical, environmentally, and energy efficient mode of transportation.
    • Yet coastal shipping in South Africa has not developed
    Ports
    • Exports: 122 mil tonnes
    • Imports: 39 mil tonnes
    • Challenges:
    • poor port design;
    • inappropriate land usage;
    • lack of investment for 20 years;
    • lack of intermodal facilities to facilitate seamless movement of cargo across modes at port land interfaces
    Ports
    • Productivity very low (17 container lifts per hour compared international norm of 35 lifts per hour)
    • Service severely hampered by congestion
    • Old equipment and lack of home-grown fleet of ships to ply local trade
    • High costs related to port logistics
    Ports
    • Lack of implementation of NFLS;
    • Focus shift every three years through “new strategies / strategic plans”;
    • Transnet development halted through lack of funding;
    • Incorrect prioritisation (2010 World Cup has lost its value in the greater picture of future transportation provision)
    DoT leadership since 2005
      • slow development of transport corridors;
      • no real promotion of inter-modalism;
      • “ immunity” given to foreign operators;
      • poor sustainability of SMME’s;
      • infrastructure bottlenecks;
      • poor trade facilitation & coordination;
      • no transport alternatives developed
    DoT leadership since 2005
  • DoT leadership since 2005
    • Government needs to:
    • Implement “The Plan” (whatever it is);
    • Define priorities in consultation with private sector;
    • Supply the infrastructure – allow private sector to provide the service;
    • Adjust all development plans according to the “Master Plan”;
    • Ensure all government departments follow the same plan for a South Africa (PTY) Ltd
    Solutions
  • BMI concludes that freight carried by road in South Africa is set to increase at an annual average rate of 7.7% over the next five years , ahead of the general rate of GDP growth The Future of Road Freight
    • Renewed growth in economy will result in freight growth (roughly 7% per annum)
    • How are we going to ensure that freight moves through SA and not Mocambique, Angola, Namibia
    • Sustainable employment within the transport sector – allow private sector to provide the services and to create employment
    • Less regulation and more determination to facilitate transportation of all goods
    Beyond 2009
      • freight transport = economic development;
      • transport costs (related to rest of world);
      • efficient transport systems;
      • new infrastructure development;
      • t he economy will grow at an annual average
      • rate of 5.7% across the 2007-2011 period
      • Foreign trade will rise by 16.4% a year in value terms
    Beyond 2009
    • Owner Drivers – 77
    • Micro – 259 (1 – 10 trucks)
    • Small – 113 (11 – 50 trucks)
    • Medium – 41 (51 – 150 trucks)
    • Large – 23 (>151 trucks)
    • Private Operator – 28
    • Total Operators : 541
    • Affiliates – 95
    • Associates – 47
    • Total Members : 683
    Membership
    • Thank You