Ready & Waiting

Transnet Freight Rail anticipates economic uptick, aims to unlock intraregional collaboration

- Samantha Herbst

Despite being at the mercy of economic uncertainty, compounded by sometimes heavily fluctuating commodity prices, State-owned rail transport company Transnet Freight Rail (TFR) has identified itself as a key economic enabler that aims to boost the South African economy by trying to unlock areas of potential in support of domestic and export markets, while waiting in the wings for an uptick in the mining sector.

“We are supporting the country’s rail logistics customers by ensuring that we improve efficiencies and concentrate on optimising the entire value chain,” notes TFR capital planning GM Brian Monakali in an interview with Mining Weekly. He makes it clear that the rail utility is poised for growth and ready to serve its clients, which include the mining industry, by pacing rail capacity expansion in line with market demand.

The current economic downturn, especially in terms of its effect on the mining industry, has, however, impacted significantly on TFR’s bottom line, as much of the utility’s funding depends on mining forecasts, Monakali explains. This even prompted parent company Transnet to review downwards its capital expenditure for the group’s rolling seven year market demand strategy, or MDS.

“When the bulk commodities from the mines are affected in terms of growth prospects, so are we, as the mines’ financial success is also used to support our funding requests. If one suffers, so does the other,” notes Monakali, the newly elected chairperson of the International Heavy Haul Association.