https://newsletter.en.creamermedia.com
Africa|Coal|Export|Freight|Mining|Ports|rail|Resources|Road|Roads|Safety|Transnet|transport|Trucks|Products|Solutions|Locomotive|Operations
Africa|Coal|Export|Freight|Mining|Ports|rail|Resources|Road|Roads|Safety|Transnet|transport|Trucks|Products|Solutions|Locomotive|Operations
africa|coal|export|freight|mining|ports|rail|resources|road|roads|safety|transnet|transport|trucks|products|solutions|locomotive|operations

Transnet CEO fears major job losses in trucking industry after road demand fades

Transnet Portia Derby

Transnet Portia Derby

17th August 2023

By: Bloomberg

  

Font size: - +

South Africa’s surge in trucking that’s emerged largely due to higher coal prices and train bottlenecks may lead to catastrophic job losses in the road transport sector when factors ease, according to the head of the state-owned port and rail company.

The logistic problems faced by Transnet — from locomotive shortages to vandalism — have forced miners to choose the more expensive option of trucking commodities to the coast to take advantage of higher prices.

Over 3 500 trucks per day carry mined products across the nation’s roads, more than double such traffic in 2020, according to Minerals Council South Africa.

That raises concern over what will happen to truck owners in the wake of lower commodity prices and as rail operations improve, Transnet CEO Portia Derby said at a Bloomberg event in Johannesburg. Operators in the sector need to start earnest talks and establish a model that will include truckers long-term.

“We have created the demand — our failure on one hand and also the demand of the mining industry has created the trucking industry,” she said. “For the vast majority of the truckers they are moms and pops, who when they left work took their pensions and bought a truck because there was an opportunity.”

Trucks carrying coal and other commodities sit in queues that stretch for miles to the Mozambican border and crowd ports along the coast. The onslaught of traffic in rural areas and towns has created safety issues for the communities as well as drivers.

But prices for export coal have dropped more than 50% in the first half of the year, compared to the same period in 2022, Exxaro Resources reported Thursday in a results statement.

“We certainly need to get more freight off the roads and back on the rail straight to port and in a very streamlined manner,” Chiedza Madzima, head of operational risk research for BMI-Fitch Solutions, said at the event.

Richards Bay Coal Terminal shipped 50-million tons of the fuel last year, the lowest amount in three decades, due to the rail issues.

“I hope our performance is not worse than last year,” Derby said. “So we are working really hard to make sure that we at least meet the 60 million tons that we we committed to.”
 

Edited by Bloomberg

Comments

 

Showroom

Klüber Lubrication
Klüber Lubrication

Klüber Lubrication ensures that the world’s essential systems—drive units, machines, and water flow—operate efficiently, sustainably, and reliably...

VISIT SHOWROOM 
Alcohol Breathalysers
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 13 December 2024
Magazine round up | 13 December 2024
13th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.427 0.53s - 198pq - 6rq
Subscribe Now