Transnet in South Africa reports that this year’s rail throughput will fall short of expectations

The CEO of the South African logistics company Transnet stated on Tuesday that the company’s rail freight volumes might surpass last year’s total of 160 million to 165 million tons in the year ending in March, falling short of the 170-million-ton goal established as part of its recovery plan.

Due to a lack of equipment and maintenance backlogs following years of underinvestment, the group has found it difficult to deliver sufficient freight rail and port services. The network has also been harmed by widespread cable theft and vandalism.

Rail volumes are rebounding, CEO Michelle Phillips said a panel at Africa’s annual Mining Indaba in Cape Town.

“You’ll see that to date we are 9 million tons above where we were last year,” Phillips stated. “So, the 170 (million tons) targets, it looks like we will end up between 160 (and) we’re trying to move closer to the 165 targets.”

In the previous fiscal year, Transnet moved 151.7 million tons of freight by rail; this year, growth is anticipated to be between 5.5% and 8.8%.

According to Phillips, the goal of reaching 170 million tons is now more achievable, despite obstacles including a shortage of funds to upgrade the rail system.

In December, Transnet released a formal statement detailing the terms and circumstances for the privatization of South Africa’s rail network, therefore opening it to outside investment.

Cliffe Dekker Hofmeyr, a legal firm, claims that this will assist the corporation reduce its enormous debt, boost freight volumes in the network, and eventually boost the South African economy.

At the time, the minister of transportation said it would assist the nation in meeting the government’s goal of moving 250 million tons of freight annually over the following five years.

“We need funding, resources and skills that the private sector has,” Phillips stated.