Volkswagen, Transnet collaborate to revive rail transport in South Africa

Transnet, the custodian of rail, ports and pipelines in South Africa, is actively negotiating to increase train services between the port of Gqeberha in Eastern Cape and Gauteng, the country’s commercial hub. This is part of its efforts to better connect the two automotive manufacturing regions.

Also, the move comes in response to mounting criticism from carmakers, coal miners, and iron ore producers over the declining rail services that have pushed more commodities and vehicles onto trucks.

Transnet confirmed these discussions, stating it is working with the government and financial backers to expand the Southern Corridor rail network. The plan includes adding three 50-wagon trains daily for automotive companies, linking Port Elizabeth in Gqeberha to Gauteng. The state-owned company anticipates that private firms will eventually invest in rail infrastructure and trains to further improve the service.

Currently, manufacturers like Volkswagen (VW) and Isuzu rely heavily on trucks to transport their vehicles from their plants near Gqeberha to Gauteng, South Africa’s largest car market. Ford and BMW, with plants in Gauteng, could also utilize the rail line to move cars to the coastal port, offering an alternative to the congested Durban terminal.

The firm is also in talks with VW to revive the existing rail haulage service between the carmaker’s plant in Kariega, near Gqeberha, and Gauteng. However, a test run of the train was delayed due to floods in the Eastern Cape.

In addition to automotive transport, Transnet is seeking private train operators and investors to help expand manganese shipments to Port Elizabeth and the nearby port of Ngqura.

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