Transcript (pptx, 524 KB) - Ekurhuleni Metropolitan Municipality

Title: Road vs. Rail… A
shift towards rail
Date: 16 Nov 2015
About Us
Mehleketo Resources an EOH company is:
• A black owned and managed company specializing in the rail industry
• The only turnkey company in SA that provides the following services in the rail
industry:
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Civil and Track
Signalling
Structural
Electrical
Telecommunications and
Rolling stock services
Buildings
Turnkey Command & Control centres
Roads
The only local based company in SA that offers both engineering (consultancy) and
construction services within the railway industry in all the aforementioned
disciplines.
Equipped with a good mix of local and international expertise to provide ‘fit for
purpose’ solutions for the African market
Introduction
• Logistic costs account for approximately 12.5% of the total GDP of South Africa
(2014: +-R450bn)
• Transportation costs represent the biggest portion of the logistic costs. Volatility of
the cost drivers of these transportation costs (e.g. fuel), requires that South Africa
seek more efficient methods of transportation.
• Intermodal transportation systems are required with a focus of shifting more freight
from road to rail
• Rail Transportation also includes the movement of passengers which is vital to
ensure ease of access between metropolitan areas and is vital to promote business
Intermodal Transport:
The act of using more than one
transport modes without
changing the loading unit
Why the need for more efficient transport
• Transportation costs account for largest portion of Total National Logistic costs.
Averaging 60%, +- R250bn in 2014
• Fuel is the most volatile of cost drivers. An increase of 15% from 2013 to 2014 meant
an increase of R14bn in Transportation costs
However if the transportation costs grow proportionally to the GDP then it could be
considered that the transportation has contributed to the total GDP. Therefore one
should investigate the transportation costs vs. total Transportation GDP
Why the need for more efficient transport
• Logistics costs as a percentage of transportable GDP have grown significantly over the
past four years.
• Therefore logistics are becoming less efficient, or that the same number of tonne-km
are required but the cost drivers are growing faster than the commensurate growth in
the value of the goods.
A more efficient transport system is therefore required to balance the volatile
transport cost drivers (e.g. fuel prices) and value of goods
Road vs. Rail: A Shift to Rail
Even though there are more challenges facing rail transport in South Africa, it is still
preferred as a more efficient form of freight transportation
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Although the rail industry has its challenges. Rail
Transport still remains more efficient than Road
Transport
According to Transnet Freight Rail in South
Africa: “Rail transport is 75% cheaper than
road.”1
However of the 590-million tonnes of railfriendly cargo transported at present, only 210million tonnes
Lack of reliable passenger transportation system
and the supporting systems discourage rail
transport via train
Challenges facing
rail
So what do we have to do to shift from
road to rail?
1http://www.bdlive.co.za/business/transport/2015/01/27/road-is-still-king-of-freight
Challenges facing
road
Road vs. Rail: A Shift to Rail
• A need to expedite the implementation of the rail revitalization programme to
address the inherent inefficiencies in Rail Transport;
• Promotion of Rail Transport as a mode of choice for passenger and freight
transportation and implementation of a strategy to move certain current road
cargo back to rail;
• Active state involvement in the facilitation of investment and private sector
participation;
• A need for a national programme of recruitment, training and skills development
in the rail industry
• Implementation of a strategy to create an intermodal transportation system e.g.
Port (Dry and Wet) to Rail to Road. This strategy may include the following:
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Develop rail brachlines
Establish new ports (Dry and Wet)
Mass and Light transport systems
Supporting transportation systems e.g. bus and taxi systems to support rail network
• Implementation of a comprehensive strategy for safety and security
Contact Details:
Name : Lucien Peters
Email : [email protected]
Cell
: +2784 552 2728