https://www.miningweekly.com
Africa|Business|Coal|Cutting|Export|Fire|Freight|Iron Ore|Logistics|Mining|Ports|Power|rail|Resources|Steel|Transnet
Africa|Business|Coal|Cutting|Export|Fire|Freight|Iron Ore|Logistics|Mining|Ports|Power|rail|Resources|Steel|Transnet
africa|business|coal|cutting|export|fire|freight|iron-ore|logistics|mining|ports|power|rail|resources|steel|transnet

South Africa aims to fire up economic growth with port, rail revival

A TFR locomotive

Photo by Creamer Media

13th December 2023

By: Bloomberg

  

Font size: - +

South Africa’s government and the business community set a target of boosting the economic growth rate by as much as six percentage points by fixing the country’s collapsing ports and freight-rail network.

They predict that cracking down on crime and corruption may save as much as 300 billion rand ($16 billion) a year, according to a slide presentation from a meeting held earlier this month, which were seen by Bloomberg and confirmed by business representatives. South Africa’s National Treasury has forecast gross domestic product will grow 1% next year.

South Africa’s biggest companies and the government have set up joint panels as part of a drive by its biggest companies to work with the state to resolve a host of issues holding back the economy. Those range from power cuts and the poor performance of the rail network, to increasing crime and an inefficient work-visa application process.

Coal shipments on South Africa’s freight-rail network have plunged to 30-year lows and iron-ore railings are at their lowest in a decade, prompting companies including Glencore Plc to consider cutting jobs. Port snarl ups are resulting in delays to the loading and offloading of ships and some fashion retailers have resorted to flying in apparel.

The problems are seeing “mining companies reconfiguring in line with current reality and delaying capital investment, putting jobs at risk,” the National Logistics Crisis Committee said in the presentation.

While no dates have been set for when the targets are to be met, the presentation cites aspirations set by state logistics company Transnet SOC Ltd. and the office of the president, in the Freight Logistics Roadmap, for the recovery of shipments.

These include overall freight moved by rail increasing to 193 million tons in the year through March 2025 from 149 million tons in the year to March 31, 2023. Similarly ambitious targets have been set for the processing of containers at ports and the shipping of cars and bulk minerals.

The roadmap is a government document outlining plans to boost private involvement in the country’s largely state-run ports and rail network.

B4SA, the business organization helping coordinate the work with the government, didn’t immediately respond to a request for comment. Vincent Magwenya, a spokesperson for President Cyril Ramaphosa, declined to comment.

So far there is little sign of improvement.

Kumba Iron Ore Ltd., the country’s biggest producer of the steel raw material, is running out of space to store ore it has mined and can’t move to the port. Exxaro Resources Ltd., a coal exporter, said last month Transnet’s railings to the main export terminal are on course to fall for a sixth consecutive year.
 

Edited by Bloomberg

Comments

Showroom

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/04/2024)
12th April 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.572 0.609s - 138pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: