Volkswagen, Isuzu Motors, and other automakers operating in South Africa are actively engaging with Transnet, the state logistics company, to revive a deteriorating rail line.
This crucial infrastructure connects the country’s commercial hub in Gauteng province with a car export terminal 700 miles away in the city of Gqeberha.
The automakers propose to hire a private operator to run trains on the line, facilitating the efficient transport of vehicles in both directions.
Reducing Reliance on Trucks and Carbon Footprint
Currently, companies like Volkswagen and Isuzu rely almost exclusively on trucks to move vehicles from their plants near Gqeberha to Gauteng, South Africa’s largest car market.
This heavy reliance on trucks not only contributes to road congestion and accidents but also increases carbon emissions. By reviving the rail line, automakers aim to reduce their carbon footprint and optimize transportation costs.
Benefits for Multiple Automakers
Martina Biene, chairwoman and managing director of Volkswagen South Africa, emphasizes the importance of the rail line for the domestic market, stating, “The majority of the domestic market sits in Gauteng province.”
The rail line would also prove advantageous for companies like Ford Motor Company and BMW, which have plants in Gauteng, by providing an alternative route to the port in Gqeberha, bypassing the congested terminal in Durban.
A Solution to Collapsing Freight-Rail Service
The automakers’ initiative to revive the rail line comes as Transnet faces a declining freight-rail service, impacting various industries, including coal and iron-ore exports.
Transnet has recently opened the door to public-private partnerships, signaling a potential opportunity for the automakers’ proposal.
While Transnet does offer a car transport service, Billy Tom, CEO of Isuzu’s South African unit, highlights its uncompetitive nature and inefficiency. He notes that transporting vehicles by train takes significantly longer than by truck, leading to increased carbon emissions.
The automakers are actively seeking a partner capable of operating the rail line profitably and efficiently. This collaborative effort between the auto industry and Transnet holds the promise of revitalizing a critical transportation link, benefiting both the automotive sector and the broader South African economy.