Rail is key to driving trade

Published Aug 28, 2017

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JOHANNESBURG - Emmanuel Ntshangase, Country Manager of Maersk Line

Hinterland Territories on Monday said access to the Hinterland countries

is vital for the growth of the African continent, as each of the countries have

a great deal to offer the rest of the world.

“Lake Nyasa in Malawi contains more fish species

than any other lake in the world, making it a prime location for the export of

fish. Furthermore, Zambia is

Africa’s second largest copper producer and Zimbabwe is the world’s sixth

largest tobacco producing country.” Poor inland connectivity and the related cost to move

products inland are among the biggest challenges currently facing landlocked countries with

regards to trade.

“The World Bank

Trading Across Boarders Report, which ranks economies on their ease of doing

business, suggests that Hinterland Countries currently have room to improve

when it comes to moving products inland.”

Ntshangase said the majority of these issues to the high

proportion of cargo that currently moves inland via road. “The border crossings

and customs processes in these landlocked countries were not

designed for the amount of traffic and cargo that currently moves via road,

which has occurred due to the use of railways having diminished over the

years.”

He said increasing the use of rail, which reduces the

amount of cargo on the road, provides a solution to the majority of these

challenges and brings about numerous advantages in the form of lower costs,

diminished risk and social benefits. “Rail transport is a cost-effective option in

comparison to truck transport, particularly for heavy 20’ containers, and

railways are more and more willing to work with customers to find better

transport solutions.

Risk is also reduced in terms of port storage as well as

possible standing time at the border posts and finally, from a more social

aspect, roads will not be further damaged and by reducing trucks on the roads,

there will be fewer truck-related accidents.”

Ntshangase said: “Closer to South Africa, Transnet Freight Rail are

continually performing maintenance and upgrading lines as well as locomotives whilst

all the other Southern African rail operators, which include the

National Railways of Zimbabwe, Zambia Railways Limited, and the Mozambican

Ports and Rail Company, are starting to work much closer together as

they have realised that they all are part of the total supply chain.

Collaboration between these rail operators is therefore vital.”

- BUSINESS REPORT ONLINE

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