Freight Rail Crisis: GNU’s Neglect Derails South Africa’s Economic Potential

ActionSA is alarmed by the ruling coalition government’s inability to address South Africa’s freight rail crisis, which continues to undermine economic growth, job creation, and public safety. StatsSA’s latest land transport report reveals a staggering 25.6% year-on-year decline in freight rail volumes for September 2024, while road freight continues to bear the brunt, destroying our roads and putting lives at risk.

South Africa possesses between 70% and 80% of the world’s manganese reserves, a critical mineral for steel production and electric vehicle batteries. Yet, instead of investing in existing rail infrastructure to support this growing demand, the government’s inaction forces the mining sector to rely heavily on road freight. This reliance is not only unsustainable but also potentially deliberate, with speculation that some private interests are profiting from contracts and investments tied to road transportation.

The failure to prioritise rail infrastructure is a national scandal. In 2022 alone, 7.3 million tons of manganese were transported by road—a figure that has steadily climbed since 2019, despite the environmental and economic advantages of rail. Road freight damages infrastructure that taxpayers must repeatedly repair, congests routes critical for ordinary South Africans, and endangers lives due to increased heavy vehicle traffic.

Meanwhile, Transnet Freight Rail (TFR) has promised solutions, including incremental upgrades and the development of new corridors. However, progress has been sluggish, with manganese rail volumes stagnating since 2019. The touted expansion of the manganese line to accommodate growing exports by 2027 is simply too little, too late for an industry with massive global demand and the potential to uplift regional economies.

This failure extends beyond mining. Overall, freight rail payloads remain far below ActionSA’s 500,000-ton daily benchmark. Under the GNU, volumes have stagnated at just over 430,000 tons, with declines continuing quarter after quarter. The ripple effect of poor freight performance is devastating for export competitiveness, GDP growth, and job creation.

South Africa must urgently invest in rail infrastructure to address these issues. Properly functioning freight rail not only supports our export potential but also ensures fewer trucks on our roads, reducing accidents, improving transit times, and alleviating congestion. ActionSA will continue to advocate for a rail-first freight strategy that prioritizes efficiency, safety, and sustainability.

ActionSA’s GNU Performance Tracker will hold the ruling coalition accountable for these failures. The GNU that has taken over from a failed and rejected ANC, which still remains at the helm, must account for this epic failure and flagrant neglect of our infrastructure and international best practice.

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