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Cabinet adopts plan to improve freight logistics

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The cabinet has considered and approved for publication of a freight logistics road map which outlines a clear path to address the immediate challenges in the country's logistics system, while also seeking to reform it over the long term.

That's the word from the Minister in the Presidency, Khumbudzo Ntshavheni.

Speaking at a post-cabinet briefing on Monday, she said the challenges in South Africa's freight logistic system pose a significant constraint on economic growth and job creation, with the impact being felt in the job losses in the mining and manufacturing sectors.

"The immediate priority of the logistics road map is to stabilise and improve the operational performance of the freight rail network which presents a severe constraint on exports.

The main implementation mechanism for the short-term intervention will oversee operational improvement through five priority corridors, which is also aligned with Transnet's turn-around plan to improve operations and stabilise finances.

The road map outlines three areas of intervention to improve rail performance:

*Operations and rolling stock improvement - this will include returning long-standing locomotives to service through agreements with OEMs (Original Equipment Manufacturers) to ensure the supply of spares or through the appointment of a "step-in OEM".

*Security and safety of the rail network - this includes collaboration with law enforcement agencies.

*Capital investment programme - for the expansion plans and to sustain operations.

"In addition, the road map outlines a path to implement the commitment made in the national rail policy and national commercial ports policy and plans for the reform of the freight logistics system," Ntshavheni said.