Railway Transport in South Africa 2015
Price
R 1 900.00(ZAR) estimated $ 120.93 (USD)*
Report Coverage
The report on the South African Railway sector focuses on the current state of the sector, developments within the sector and factors influencing the success of the industry. The report profiles seven companies including the two state-owned enterprises as well as independent entities, Bombela Operating Company (Pty) Ltd, the operator and maintainer of the Gautrain and Grindrod Rail Operations (Pty) Ltd, which has a fleet of 65 locomotives.
Railway Transport
This report covers passenger and freight transportation by rail, sectors characterised by decades of ageing infrastructure, poor maintenance and lack of investment. During the past few years low economic growth, the drop in commodity prices, low manufacturing and mining output and electricity constraints, have all had a negative effect on Transnet Freight Rail’s freight rail volumes. PRASA’s Mainline Passenger Services have also seen dwindling numbers with statistics for 2013/14 showing 1 million passengers were carried on long distance services compared to 3 million in 2009/10.
Investment Programmes
PRASA and Transnet are implementing huge capital investment programmes to revitalise the rail industry and to create rail capacity ahead of expected demand, to enable a shift of traffic from road to rail. The passenger division will implement a R123.5bn Rolling Stock Renewal Programme supported by programmes to increase capacity and upgrade stations and national signalling systems while Transnet’s Market Demand Strategy will invest R336.6bn on capital projects over a seven-year period.
Enabling Legislation
Strategic investment-led policy interventions aligned to the Government’s National Development Plan are being introduced to support the revitalisation of the railway industry. Government has already published the Green Paper on National Rail Policy for comment and a Single Transport Economic Regulator (STER) to address the regulatory shortcomings across the transport sector has been proposed. Meanwhile the Department of Transport plans to develop and implement the Private Sector Participation (PSP) Framework for ports and freight rail.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Supply Chain | 5 |
| 2.2. | Geographic Position | 6 |
| 3. | SIZE OF THE INDUSTRY | 9 |
| 3.1. | Passenger Rail Services: PRASA | 10 |
| 3.2. | Passenger Rail Services: Gautrain | 11 |
| 3.3. | Freight Rail Services | 11 |
| 4. | STATE OF THE INDUSTRY | 16 |
| 4.1. | Local | 16 |
| 4.1.1. | Passenger Rail Services | 18 |
| 4.1.2. | Passenger Rail Services: Gautrain | 20 |
| 4.1.3. | Freight Rail Services | 21 |
| 4.1.4. | Corporate Actions | 24 |
| 4.1.5. | Regulations and Government Programmes | 24 |
| 4.1.6. | Enterprise Development and Social Economic Development | 27 |
| 4.2. | Continental | 30 |
| 4.2.1. | Passenger Rail Services | 31 |
| 4.2.2. | Freight Rail Services | 31 |
| 4.3. | International | 33 |
| 5. | INFLUENCING FACTORS | 35 |
| 5.1. | Green Paper on National Rail Policy | 35 |
| 5.2. | Improved Regulatory Oversight | 36 |
| 5.3. | Investment in Rolling Stock and Rail Infrastructure | 37 |
| 5.4. | The Movement from Road to Rail | 44 |
| 5.5. | Private Sector Participation (PSP) | 47 |
| 5.6. | Economic Environment | 49 |
| 5.7. | Challenges and Issues Facing the Mining Industry | 51 |
| 5.8. | Rising Operating Costs | 53 |
| 5.9. | Technology, Research and Development (R&D) and Innovation | 54 |
| 5.10. | Labour | 57 |
| 5.11. | Cyclicality | 61 |
| 5.12. | Environmental Concerns | 62 |
| 5.13. | Safety and Security | 64 |
| 5.14. | Electricity Supply Constraints | 66 |
| 5.15. | Government Initiatives | 67 |
| 6. | COMPETITION | 68 |
| 6.1. | Barriers to Entry | 70 |
| 7. | SWOT ANALYSIS | 71 |
| 8. | OUTLOOK | 72 |
| 9. | INDUSTRY ASSOCIATIONS | 73 |
| 10. | REFERENCES | 73 |
| 10.1. | Publications | 73 |
| 10.2. | Websites | 75 |
| APPENDIX 1 | 77 | |
| Rail Operators Excluding PRASA, TFR and Gautrain | 77 | |
| APPENDIX 2 | 83 | |
| Transnet Freight Rail Business Units: Commodities and Critical Train Flows | 83 | |
| APPENDIX 3 | 86 | |
| Current and Future Rail-Related Projects on African Continent | 86 | |
| APPENDIX 4 | 89 | |
| TETA: Rail Sector Scarce Skills | 89 | |
| COMPANY PROFILES | 91 | |
| African Rail and Traction Services (Pty) Ltd | 91 | |
| Bombela Operating Company (Pty) Ltd | 93 | |
| Grindrod Corridor Management (Pty) Ltd | 95 | |
| Grindrod Rail Operations (Pty) Ltd | 97 | |
| Passenger Rail Agency of South Africa | 99 | |
| SAFreight Logistics (Pty) Ltd | 103 | |
| Transnet SOC Ltd | 105 |
