DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
QUESTION NO.1417
DATE OF PUBLICATION: 07/05/2010
1417. Mr J H van der Merwe (IFP) to ask the Minister of Public Enterprises:
(1) Whether she has been informed of the current long delays that are
suffered by exporters when sending goods to harbours by rail; if not, what
is the position in this regard; if so,
(2) Whether she is taking any steps with regard to this current incapacity
with Transnet; if not, why not; if so, what steps? NW1659E
REPLY
(1) Yes, the Department is aware of the various challenges that are being
experienced by exporters sending goods on rail. There is greater
shareholder oversight and monitoring of operational performance in ports
and rail. Furthermore the Transnet âQuantum Leapâ Corporate Plan (2010/11)
sets challenging targets for key operational performance indicators such as
increasing wagon and locomotive utilization as well as efficiencies in port
operations. In rail specifically cable theft has been highlighted as one of
the main contributors to delays in transporting goods. Below is a breakdown
of the main commodities Transnet transports by rail to harbours for export
including details of the high-level operational constraints in each case:
Export Coal from the mines to Richards Bay
Transnet transports this commodity for stockpiling at the Richards Bay Coal
Terminal (RBCT), a privately owned terminal. This terminal has 11
shareholders, which include Anglo Operations Ltd, Eyesizwe Coal (Pty) Ltd,
BHP Billiton Energy Coal South Africa Ltd, Kangra Coal (Pty) Ltd and Sasol
Mining (Pty) Ltd. The average cycle time agreed upon with customers is 59
hours from the mines to the port. However, should the stockpile at the
terminal be too high or there is equipment or other problems at RBCT, then
delays are likely to occur.
Iron Ore from Sishen to Saldanha
Iron ore is transported from Sishen to Saldanha for export as well as
stockpiling. The agreed transit time from the mine to the port is 22 hours.
Transnet performs well in terms of the agreed transit time for this
commodity, which is consistently achieved.
Chrome from Rustenburg to Richards Bay
The performance of this commodity has been hampered by off-loading capacity
which takes two (2) days longer than the agreed cycle time. The port is
implementing a project to refurbish and upgrade off-loading equipment.
Containers from Pretoria and City Deep to Durban
The average transit time for containers on the Johannesburg to Durban
corridor (NATCOR) is 19 hours. Delays have been experienced on the NATCOR
due to theft of overhead copper cable. Containers from Gauteng to Port
Elizabeth/Ngqura take 40 hours to reach the destination because of cable
theft in Gauteng. The transit time of containers to and from Cape Town is
46 hours, while the design is 36 hours of transit time. The issues which
are causing delays, such as, capacity and planning are progressively being
dealt with.
Manganese to Port Elizabeth
This commodity is performing in accordance with the agreed transit time of
six ( 6) days. This export channel is constrained because of the lack
of rail and port capacity to support growth. Transnet is currently
negotiating with key players in the manganese industry to plan a capacity
expansion and determine the costs thereof.
Magnetite to Richards Bay
Magnetite is performing well below the agreed transit time of seven (7)
days and is therefore running well.
(2) Yes. The Department has put greater emphasis on improvements to
operational efficiencies in its shareholder oversight role of Transnet.
With regards to cable theft the Department notes that Transnet faces a
major challenge with containers from Gauteng because of constant overhead
cable theft. The following actions are being put in place to deal with
cable theft:
⢠Conversion from copper cable to tiger wire;
⢠Increasing the number of security guards in the hotspot areas;
⢠Joint working relationship with the Hawks, National Intelligence
Agency and the National Prosecuting Authority which has resulted in
the apprehension and conviction of cable thieves;
⢠Recommendation for the amendment to the Precious Metals Act, 2005
(Act No. 37 of 2005) to include copper as a precious metal, and;
⢠Refocusing Corporate Social Investment initiatives to benefit
communities along the railway reserves.