KZN DoT to Further Empower the Freight Industry Through Summit

The success of the country’s endeavors is evident in the strong economic growth the country is experiencing. Although much has been achieved, it is only fair to admit that our endeavors to create development need to increase, as many previously disadvantaged people are still impoverished through unemployment. The vision of the KZN Department of Transport is "Prosperity through Mobility". This means that all the activities of the department and the manner in which the department delivers services to communities are aimed at increasing the wealth and quality of life of all the citizens of the province. Flowing from this vision, one of our objectives is to identify opportunities in the freight industry for enterprise development, job creation and to facilitate access to skills and capital for emerging contractors.

The KwaZulu-Natal Department of Transport is hosting its Freight Empowerment Summit on Thursday, 28^th July 2005 in Pietermaritzburg which is intended to introduce the potential job opportunities of the freight transport sector, with guidance as to available financing opportunities. MEC Bheki Cele said "The holding of this Empowerment Summit and the showcasing of these opportunities demonstrates the commitment of the KZN Department of Transport to utilising all sectors of the transportation market, to maximise economic development and the creation of jobs for the people of KwaZulu Natal".

   
Rail, road and maritime transport that have been identified as specific modes that present opportunities in the freight industry for enterprise development, job creation and to facilitate access to skills and capital for emerging contractors

RAIL TRANSPORT 

The KwaZulu-Natal branch line network has nine clearly defined railway lines. Passenger services are no longer offered on these lines and since 1980 the freight tonnage carried has reduced substantially, from over 8 million tons to 2.5 million tons in 2002. This is a total cargo drop of 72%. The cargo lost by rail rapidly transferred onto road mainly due to increased road vehicle size, aggressive competition from the deregulated road haulage industry, large increases in private distribution fleets and the poor state of rail infrastructure. The reduction in rail traffic has also reduced the number of opportunities for SMMEs in the rural areas, to participate in the supply chain of commodities, as the large centrally controlled fleets of heavy road vehicles now in operation, usually carry out the entire distribution operation. 

The revitalisation of the branch lines is a phased step process. The initial step is to rehabilitate the rail lines to address the neglected deterioration of the infrastructure. Once the infrastructure is restored to an acceptable level, an on-going preventative maintenance programme will be implemented to maintain lines at an operational level. The third step is to implement an on-going maintenance programme for the equipment. The final step focuses on the railway support activities such as the operation of depots, distribution of goods, warehousing and cargo collection, etc. 

The branch line network has been neglected to such an extent that it can be best described as being poor and technically substandard. To attract and sustain an optimum amount of cargo on the branch lines, the lines have to be rehabilitated to an operable state where they can provide a safe and efficient service to customers. This rehabilitation work can be outsourced to SMMEs and has been identified as follows: 

• Repairs to tracks and track ballast

• Clearing points and buried rails (mainly in unused sidings)

• Concreting crossing

• Fencing where necessary

• Opening drains, culverts and bridges

• Repairs to buildings and structures

Rail and Equipment Maintenance

Rail:

• Fence repairs and maintenance.

• Track weeding, herbicide spraying and clearing of verges.

• Inspection and maintenance of drains, culverts, and bridges.

• Inspection of lines, restoring, ballast redistribution and tamping.

• Truck cleaning and body maintenance.

• Routine painting of rolling stock.

• Cleaning of passenger coaches.

• Locomotive washing and cleaning.

• Wheel inspections and lubrication of truck bogies and bearings.

• Routine maintenance

• Heavy overhauls

In terms of current legislation Spoornet is the exclusive railway operator on most branchlines in the country. The KZN:DOT and the Dept. of Transport Pretoria are engaging Spoornet on ways to unlock these activities as Micro and Small business opportunities. 

These negotiations also extend to the operation of privately owned railways on these branchlines. Identified potential pilot project areas are the Nkwalini railway branchline, the Sisonke District railway network and the South Coast, Port Shepstone to Harding railway lines. 

Operational and Railway Support Activities

In addition to the potential for creation of work on the railway itself, once the railways are conveying a feasible amount of branch line traffic and offer competitive rates compared to road transport, there will be many opportunities for small businesses to provide services to the communities in rural areas served by branch lines. If rail service conditions were improved, some of the services which historically provided opportunities as peripheral services to the railways could well be viable again. These are:

• Accounting and Traffic Control;

• Signaling and IT Services;

• Ticketing and ticket sales;

• Provision of security services for rail transport (guards, vans, stations);

• Fertiliser depots offering transport to farms;

• Operating fuel depots and distribution services;

• Warehousing at rail stations for general goods, hardware, building supplies, etc;

• Distribution services for general goods from rail, to small and rural communities by small transport firms;
• Brokering or organising transport and materials handling for collection and loading of commodities in the major urban areas for consignment by rail to branch lines e.g. cement, bricks, fertiliser, lime, building materials, containers, chemicals, feeds, maize.

It is in this manner that the branchlines can act as significant economic generators for their respective rural areas. 

ROAD TRANSPORTATION 

Due to large companies dominating the freight transport industry to date and making it difficult for emerging operators to progress, the Freight Directorate has instituted programmes for the training of small transport operators. Over the past two financial years, approximately three hundred small transport operators were trained and a database for these trained small transport operators has been created. 

The KZN:DOT Freight Transport Directorate has also been identifying working opportunities within the road freight industry for SMME operators. The KZN:DOT Regional Offices often procure supplies as part of their operational activities which requires the goods to be delivered to depots or site. This situation provides the opportunity for such transportation to be outsourced to small transport operators who are listed on the departments Small Transport Operator’s database. 

There are current initiatives that support the building of Truck Stops on certain routes in the province. The construction of these facilities will provide an opportunity to solicit the services of SMMEs. 

KwaZulu Natal is naturally endowed with the two largest ports in South Africa, which are strategically positioned on major shipping routes, serving as major gateways to domestic and international trade. The import and export of cargo is a fairly complex industry involving many different activities. The Freight Directorate aims to establish relationships with the National Ports Authority and other industry leaders to identify opportunities for SMME development in the maritime sector. 

The following activities will be targeted as they are not asset intensive but rather require intellectual skills:

• Clearing And Forwarding
  In this activity clearing and forwarding agents act on behalf of importers and exporters. The agents arrange for the cargo to be cleared through customs, arrange necessary documentation, pay duties on behalf of customs, pay terminal charges, organize transportation and arrange packing and unpacking.

• Tallying
  This activity entails doing a stock take of all the cargo being loaded onto the ship to ensure that there is accuracy in the tonnages.

• Port Area
  The transportation of goods and equipment in and around the port is an area where there is a significant amount of opportunities for SMME development.

• Stevedoring
  Stevedores are responsible for the loading and unloading of the ships.

• Ship Chandelling
  Often while ships are docked the crew requires groceries and other supplies for their stay in the port as well as for their next journey. The crew commissions the services of a ship chandler who sources the supplies and groceries on the crew’s behalf.

• Maintenance
  SMMEs can be used to carry out routine maintenance of equipment in the port.

• Material Supplies
  SMMEs can be used in the supply of timber, cabling, strapping material, lashings, etc.

• Cargo Surveys
  SMMEs can be used to carry out cargo surveys which require a surveyor to board the ship and check whether the cargo is intact.

The Freight Directorate in partnership with the leaders of the maritime industry will explore the above activities and other activities that maybe identified at a later stage to identify opportunities for SMMEs to thrive in. This partnership will also endeavor to provide training for SMMES where necessary.

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