Rail chaos deals a heavy blow to potential exports.
Strip away the “keynote speeches” at the Mining Indaba and there’s a sense that, in the words of the Minerals Council South Africa, there are “red lights flashing” about the sector’s future.
You wouldn’t think so, since South Africa’s mining production hit a record R1.18-trillion last year, thanks to sky-high commodity prices. But this really was the high-water mark — this year, production is estimated to fall 6%. Yet the country has been unable to capitalise on this to the extent we should have, thanks to the train wreck that is Transnet, under CEO Portia Derby. Its freight rail division is in such disrepair that the country lost an estimated R151bn in potential sales last year.
Last year, the mining sector paid R88bn in company taxes and royalties — a windfall that took some of the sting out of load-shedding. This year we’re unlikely to have that to cushion the blow. As Minerals Council chief economist Henk Langenhoven points out, “net investment in new projects has dwindled to zero” despite the fertile environment. This reflects the lack of faith in the government’s ability to keep its trains on their tracks, and the lights on.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Surprise! Transnet stuns by launching biggest privatisation since 1997 after bailout fails | BusinessThe company surprised markets, government and customers aside when it advertised a 20-year concession for the Durban to Joburg container line. | politicsblahbla News24_Business
Read more »
NEWS ANALYSIS: Transnet Freight Rail wants to outsource its own jobTransnet Freight Rail wants the private sector to run its container corridor between Johannesburg and eThekwini for the next 20 years
Read more »
Transnet, Kalagadi ink deal to transform rail access for emerging miners in SA | BusinessTransnet and Kalagadi Manganese have clinched a deal which will provide rapid rail loading for emerging miners who will soon gain greater access to the manganese line. | News24_Business
Read more »
Transnet in talks with minersThe Minerals Council says the industry lost R50bn in opportunities due to logistical constraints at ports and on the rail network.
Read more »
Transnet is finally going to share the railroadState-owned rail operator Transnet is finally going to let private enterprise operate on some of its lines. But the short-term nature of contracts could stand in the way of investment.
Read more »
Transnet is finally going to share the railroadState-owned rail operator Transnet is finally going to let private enterprise operate on some of its lines. But the short-term nature of contracts could stand in the way of investment.
Read more »