Framework for rail freight transport revival in South Africa
Most long-distance land freight in South Africa is transported by road, which (i) places harsh constraints on the country’s transport infrastructure; and (ii) gives rise to excessive external costs. This is ascribable to the high demand for road freight transport, which is dependent on imported fuel at unstable prices and which is damaging to the environment. The critical requirement is to determine how much freight, and specifically which freight, can switch to rail transport. In order to identify the freight flows that can exploit the economic principles of rail transport, a market segmentation model was developed. A feasible target market was identified that enables key stakeholders (government, the national railway and major road transport service providers) to engage in ensuring that sufficient investment in suitable transport infrastructure takes place timeously to support the country’s economic growth and development ideals in a sustainable fashion.