March 2023 | BUSINESS FLEET AFRICA
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and resolving legal challenges in
relation to locomotive procurement.
Q The operations and infrastructure
management functions of Transnet
Freight Rail are due to be separated
by October 2023, a step intended to
facilitate competition and improve
pricing.
Rail Freight was the worst performing
sub-sector of the Ctrack Transport and
Freight Index in 2022 and has been
underperforming for years, so steps
to address the sector’s challenges
are welcomed and if these steps are
implemented it could potentially be a
major boost for the logistics sector. The
Rail Freight component of the Ctrack
Transport and Freight Index declined by
26.3% year on year in January 2023, the
10th consecutive decline recorded.
“It is very heartening to see that the
transport industry formed such a big part of
this year’s budget speech. We can now only
hold thumbs that the proposed reforms
are put in place efficiently and effectively
as they are most certainly required for the
ongoing survival of many of the sectors of
the transport industry,” says Hein Jordt,
Chief Executive Officer of Ctrack Africa.
While the obvious beneficiary of the dis-
mal state of Rail Freight has been the Road
Freight sub-sector, the growing number
of heavy trucks on South African roads is
having a continued negative effect on the
quality of the road network and has accel-
erated the need for ongoing maintenance.
The additional allocation of R12.4bn in the
2023 National Budget for the rehabilitation
of provincial roads, to reduce the road
rehabilitation and strengthening backlog on
national roads is welcomed and will result in
spending on roads increasing from R61.8bn
in 2022/23 to R85.5bn in 2025/26. The
budget also noted that the South African
National Roads Agency Limited will increase
the length of the network in active mainte-
nance from 1 200 kilometres in 2022/23 to
2 400 kilometres in 2025/26, and the length
of the network in active strengthening to
600 kilometres by 2025/26.
The number of heavy trucks on both
the N3 and N4 toll routes increased in
January 2023 compared to a year ago,
while the Road Freight payload for the
country also continued to grow. This
is confirmed by the fact that the Road
Freight component of the Ctrack Transport
and Freight Index increased by 17.0% year
on year in January 2023, the 22nd straight
month of double-digit annual growth.
The Air Freight sector, which turned
out to be one of 2022’s star performers,
showed signs of moderation in January
2023. All the underlying components of the
Air Freight sub-sector declined on a month-
ly basis, including total consolidated airport
flight movements, which decreased by 1.9%
while cargo on planes decreased by 9.9%
in January. According to the International
Air Transport Association (IATA), the
lower demand for air cargo is now evident
across the globe, reflecting the multiple
headwinds facing the global economy and
spilling over to trading partner countries. Air
cargo tonne-kilometres (CTKs) to Africa was
down 10% year on year in January. The Air
Freight component of the Ctrack Transport
and Freight Index subsequently declined by
1.8% in January compared to the previous
month, but still grew by 4.6% compared to
the same period last year and 7.8% year on
year ending in December.
The Sea Freight component of the
Ctrack Transport and Freight Index
component declined by 9.8% in January
compared to a year ago but increased on a
monthly (9.6%) and quarterly basis (4.6%),
reflecting a hesitant recovery in Transnet
ports’ activities following the prolonged
strike in October 2022. However, container
Graph 2 Transnet freight rail volumes and train km
CTRACK, 2023 NATIONAL BUDGET
TFR Traffic (RHS)
TFR Volumes
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
230
220
210
200
190
180
170
55
50
45
40
35
30
25
Million tonnes
Million train km
Graph 3 Average daily coal trucks: Port of Durban and Richards Bay
CTRACK, 2023 NATIONAL BUDGET; 2022 DATAPOINT INCLUDES DATA UP TO OCT22
600
500
400
300
200
100
2020
2021
2022
2019
Daily trucks
To Port of Durban
To Port of Richards Bay