Industry sceptical about TFR’s cost-cutting claims

South African businesses are
not convinced that efforts by
Transnet to move freight from
road to rail will cut costs.
According to the 2009
supplychainforesight survey
launched in Johannesburg
last week by Barloworld
Logistics, most of the 259
respondents who participated
in the research that crossed
over nine sectors ranging
from automotive to building,
construction, engineering and
retail, were of the opinion
that there would be no cost
reduction in using rail.
Said Barloworld Logistics
divisional director: consulting
and software Johan Dekker:
“Companies don’t see any
cost advantages in using rail
despite Transnet’s R80 billion
infrastructure upgrade.”
He said from responses
received it was clear
companies would only revert
back to moving freight on
rail if they were convinced
it would increase service
delivery.
“The research did show
though that companies
believed that rail freight
would increase if a national
freight logistics strategy was
implemented. While many
were aware of the government
initiatives to improve
infrastructure and understand
the necessity for a multimodal
transport strategy, the
perception remains that costs
will not be reduced with rail
initiatives.”
Dekker said at least
seven out of ten companies
interviewed in the research
were of the opinion that
they were involved in the
development of infrastructure.
“We also found that
while reducing the supply
chain carbon footprint was
becoming increasingly more
of an issue for companies, it
was not a priority at present.”
Dekker said while most
industries acknowledged
the importance of having
environmentally friendly
supply chains, it remained
at the bottom of agendas.
This, he said, could be due
to the growing economic
crunch that has seen costcutting
initiatives becoming a
priority.