scholarly journals Framework for rail freight transport revival in South Africa

2011 ◽  
Vol 8 (4) ◽  
pp. 451-460 ◽  
Author(s):  
Jan Hendrik Havenga ◽  
Wessel Pienaar

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.

2007 ◽  
Vol 26 (4) ◽  
pp. 265-278 ◽  
Author(s):  
Wessel Pienaar

The increase in the number of freight vehicles on South Africa’s rural road network has received substantial attention. Insinuations persist that long-distance road freight haulage is of a somewhat unsavoury economic nature, and that strict economic re-regulation of the land freight transport is necessary. During the 1970s road transport replaced rail carriage as the dominant form of long-distance freight transport (excluding minerals and ore) in South Africa. On long hauls road freight carriers transport certain primary products of an organic nature (such as timber, fish and agricultural produce), some semi-finished goods, many finished goods and most consumer goods. Road freight carriers are continuously gaining market share on long-distance links where rail transport is the more cost efficient mode. The greater value added by road freight carriers in comparison with rail transport through service effectiveness is often more than the cost premium paid for utilising their service rather than making use of rail transport. Throughout history, governments have involved themselves in transport. A diverse range of arguments have been advanced for this involvement in transport, including the following:Control of excessive competition, co-ordination of transport, integration of transport with economic policy, maintenance of safety, security, and order, provision of costly infrastructure, provision of public goods, recovery of the true resource cost of transport inputs, regulation of harmful conduct and externalities, restraint of monopoly power, and social support. A set of nine instruments can be identified that governments apply to influence the performance of the freight transport industry: Legislation, direct supply, fiscal measures, monetary measures, moral appeal and persuasion, policies relating to strategic commodities, procurement policy, provision of information, and research and development. The best prospects for a sound development of land freight transport activity in South Africa will be offered within the framework of a free-functioning freight transport market. 


Author(s):  
Jan H. Havenga ◽  
Zane P. Simpson ◽  
Anneke De Bod

During the 20th century, freight transport in South Africa was employed to attain politicoeconomic ideals, resulting in the overprotection of rail and overregulation of road transport. Increasing industry pressure, combined with the international deregulation trend, led to deregulation in 1988. Myopia resulted in a rail investment hiatus and exponential growth in high-value, long-distance road transport, causing excessive logistics and externality costs for the country. The aim of this study was to propose a freight rail reform agenda based on, (1) lessons from past freight transport policy efforts and (2) the results of freight transport market segmentation driven by models developed over the past two decades. For the study, freight flows were modelled by disaggregating the national input–output model into 372 origin–destination pairs and 71 commodity groups, followed by distance decay gravitymodelling. Logistics costs were calculated by relating commodity-level freight flows to the costs of fulfilling associated logistical functions. The standard management approach of founding strategy development on market-driven segmentation provides a neutral input to steer rail reform discussions in South Africa. Market segmentation points to a dualistic rail reform agenda, enabling both a profit-driven core and a development-driven branch line network. Freight flow insights are steering the policy reform debate towards long-term freight strategy development and optimal freight logistics network design.


Author(s):  
Stefaan Swarts ◽  
David King ◽  
Zane Simpson ◽  
Jan Havenga ◽  
Leila Goedhals-Gerber

The purpose of this study is to quantify the marginal external costs associated with freight transport in South Africa. Six cost elements are included as externality cost items, namely, costs related to accidents, emissions, roadway land availability, policing, noise and congestion. Inputs in the calculations were a gravity-oriented freight flow model, a road transport cost model, actual transport costs for other modes, a warehousing cost survey, an inventory delay calculation and various national sources of information such as accident statistics and government budgets. Estimation techniques resulted in advances for externality cost measurement in South Africa. The quantification of the cost elements will be used to update the South African Freight Demand Model. The results show that the cost of transportation would have been 20% more if external factors were taken into account. The marginal rates of externalities can be used to develop scenarios based on alternative choices for South Africa's freight transport infrastructure configuration.


Author(s):  
Klairung Ponanan ◽  
Wachira Wichitphongsa

Chinese government has developed transport infrastructure rapidly under Belt and Road Initiative (BRI) strategy. The BRI strategy is China's economic development strategies for expanding trade and cultural influence towards countries in western and eastern regions, including ASEAN. The development of BRI strategy is consists of two main components i.e., (i) the Silk Road Economic Belt, follows the historical overland Silk Road through Central Asia, Iran, Turkey and eventually to Europe, and (ii) the Maritime Silk Road, originates in the South China Sea, passing through the Malacca Strait, the Indian Ocean, and the Red Sea and extending into the Mediterranean Sea (Chris & Elizabeth, 2015). Due to the BRI strategy, more than 6000 trains made the journey from China to Europe in 2018, which is an increase of 72% compared to 2017. China has sent more than 11,000 freight trains to Europe and back since the BRI strategy was announced in 2013. Railway networks have been constructed under the BRI strategy for connecting 48 Chinese cities with 42 cities in Europe through Asia. There are many railway infrastructures under the BRI strategy. The China – Laos railway (Vientiane–Boten railway) is one of project under the Silk Road Economic Belt that has been developed for serving as a key infrastructure for the economic corridor between the two countries. In nearly future, this railway will be helped to boost trade, investment and tourism for Lao PDR. and south China's Guangxi Zhuang Autonomous Region. The Vientiane–Boten railway, especially transportation time will attract both travelers and Logistics Service Providers (LSP), which can be reduced time of journey compared with road mode. In this paper, modal shift potential of travelers and freight on Kunming-Bangkok Highway (R3A), AH2, AH8, AH9, AH10, AH12, AH13, and AH18 have been investigated by considering behavioral aspects of long distance travel. Keywords: Mode Split Model, Modal Shift, Vientiane–Boten railway, Travel Behaviour


Author(s):  
Joubert Van Eeden ◽  
Jan Havenga

The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) identified South Africa's freight logistics challenges as among the key binding constraints on the country's growth aspirations. The research presented here points to the structural imbalance between road and rail freight transport as one of the key contributors to this state of affairs. Most long-distance corridor transport has been captured by road. However, long-distance transport is a market segment that is very suitable for intermodal transportation : rail is utilised for the high-density, long-distance component and road for the feeder and distribution services at the corridor end points. A market segmentation approach is developed to identify the corridors and industries that are natural candidates for such solutions, thereby paving the way for role-players and stakeholders to initiate a dialogue on the development of appropriate solutions.


Author(s):  
Anathi Hlotywa ◽  
Emeka A. Ndaguba

Background: There has been considerable decline in the investment on road transport infrastructure in recent times, as a result of the dwindling economic investment owing to lowering gross domestic product (GDP) since 2009.Objective: The objective of this study was to examine the relationship between road transport investment (ROTI) and economic development (ED) in South Africa. This article adopts the Harrod–Domar (HD) model of economic growth and development theory, endogenous growth theory and Solow–Swan neoclassical growth model.Method: Data were derived from the South African Reserve Bank, Quantec database and Statistics South Africa (StatsSA) between 1990 and 2014. It used time series, econometric models cointegration and vector error correction model (VECM) to analyse.Result: The results of the estimation demonstrate that the explanatory variables account for approximately 86.7% variation in ED in South Africa. Therefore, there exists a positive relationship between ROTI and ED.Conclusion: This study established a long-run relationship between phenomena and demonstrates the role of road transport investment on economic development in South Africa.


Author(s):  
Elżbieta MACIOSZEK

Transport plays an important role in the economy of any country. Efficient and developed transport infrastructure of various modes of transport significantly affects the availability of transport services, and consequently, the well-being of citizens. This article presents an analysis of the volume of passengers and cargo transport using rail and road transport in Poland in 2009-2019. These analyses were carried out based on data obtained from the Central Statistical Office. All data concerns Polish entities that provide services in the field of passenger and freight transport in Poland and focuses on such information as the volume of passengers and cargo by individual means of transport, broken down into domestic and international transport. Further, the presented analyses concern the length of the available rail and road routes, tracks, the size of the rolling stock as well as the groups of transported loads.


2020 ◽  
Vol 4 (1) ◽  
pp. 32-38
Author(s):  
Abi Prasidi ◽  
Muhamad. Rifni

Very limited capacity of the highway in some economies tract, such as the Trans Java traffic, has an impact on increasing the travel time especially in the use of rail transport, so that a certain pathway requires capacity building and the development of new lines gradually. The purpose of this research was to determine the capacity of rail transport infrastructure that is optimal for the distribution of goods, especially as the company managed by PT. Railway Logistics or KALOG. Another problem is how the government's role and the flow of freight transport demand. In the discussion, through a variety of existing data, the authors use research with phenomenological approach on the basis of qualitative analysis methods interpretative paradigm. Results are expected to be useful for improving knowledge about the needs of rail freight transport on goods distribution on the Java Island. The results of this research will be published in scientific journals. The purpose of this research are two folds. This research combination between qualitative data and quantitative data . The first is to calculate the technology contribution coefficient (TCC) and the second is to determine the priority of technology component development. This research has been done in PT. KALOG, a rail freight transportation company. To calculate the TCC, the author has used the technometric model and the analytical bierarchy process method. By improving these two components, operational problems will be minimized so that operating performance and sales volume will increase. It can then be expected that PT. KALOG will improve its rule in business competition.


Author(s):  
Jan H. Havenga ◽  
Anneke De Bod ◽  
Zane P. Simpson ◽  
Nadia Viljoen ◽  
David King

Background: South Africa has a disproportionately high freight transport demand owing to industrial development far from ports, low domestic beneficiation and improper modal use. Historical freight transport policy supported primary economic development, failing to preempt the changing economic structure and the resulting freight transport needs, resulting in excessive transport costs and externalities.Objectives: To share the macroeconomic freight transport challenges revealed by South Africa’s Logistics Barometer, and to identify key interventions to address these.Method: Freight flows are modelled by disaggregating the national input–output model into 83 commodity groupings and 372 geographical areas, culminating in a 30-year forecast at 5-year intervals for three scenarios, followed by distance-decay gravity modelling to determine freight flows. Logistics costs are calculated by relating these flows to the costs of fulfilling associated logistic functions.Results: Long-distance transport remains the largest general freight typology and is, due to inefficient macro logistics design, extremely costly, both in terms of intrinsic and extrinsic costs.Conclusion: South Africa’s freight task will grow 2.5-fold by 2043. Logistics and externality costs are already untenable at current levels. The development of domestic intermodal solutions will support the drive towards sustainable freight mobility.


2018 ◽  
Vol 19 (12) ◽  
pp. 859-862
Author(s):  
Mirosław Antonowicz ◽  
Henryk Zielaskiewicz

The paper discusses the problem of competitiveness between the rail and road transport with reference to the EU policy for sustainable development of the transport branch. The paper presents the idea of complexity of services which facilitates the development of logistic networks. The authors formulate preliminary assumptions recommended for designing and construction of multimodal hubs. Further, they describe examples of European and Polish businesses which, thanks to the consolidation of services, widened their offer of logistic capabilities. The authors highlight the need for action aiming at the reversal of the unfavorable trend and increasing the cargo flow by rail, and not road. Finally, they discuss the necessity to reform the current freight transport by rail through the construction of comprehensive supply chains.


Sign in / Sign up

Export Citation Format

Share Document