The Citrus Growers Association warns that escalating diesel costs and an inadequate rail network could lead to bankruptcy for farmers, urging the Department of Transport to expedite reforms outlined in the Rail Master Plan.
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The farming sector has asked the Department of Transport to urgently fix the ailing rail network or risk farmers going bankrupt.
The Citrus Growers Association has stated that the ever-increasing cost of diesel and other expenses associated with farming and logistics are threatening to imperil the citrus farming sector. The organisation addressed officials of the department during a public hearing on the Rail Master Plan, hosted in Durban yesterday for the KwaZulu-Natal leg of the hearing. The department is holding public hearings across the country on the master plan it hopes will be a game changer in reforming and transforming the rail sector.
The document on the rail master plan revealed that South Africa’s 23 540 km rail network has approximately 40% of the network likely lacking economic utility and limited socio-economic utility, while 20% consists of ring-fenced systems (mainly export coal and iron ore). It stated that of the remaining 40%, half could form a core backbone accommodating multiple operators and supply chains between major settlements, with the other half serving as dedicated feeder rail systems, contributing to local solutions while supporting the core network.
Additionally, South Africa possesses a fleet of approximately 2 960 locomotives, encompassing both electric and diesel units, and 80 000 wagons, which includes all categories of fleets comprising both active and inactive units. However, this equipment frequently suffers from long turnaround times, disrepair, and issues with operational readiness, compromising its effectiveness.
The rail network’s signalling equipment is outdated, vulnerable to vandalism, and inadequately maintained. These deficiencies necessitate approximately 250 000 manual train authorisations monthly, introducing substantial inefficiencies and safety concerns throughout the system. The department has put together the 50-year plan to rehabilitate railway performance in hopes of moving more goods from road to rail.
The master plan is an overall strategy for the government that aims to ensure that all components in logistics and transportation, such as roads and rail, work in a coordinated manner. It outlines in broad strokes what the department hopes to change in both rail cargo transport and passenger services.
On the passenger side, it stated that in KwaZulu-Natal, it is working to address the issue of train shortages and delays, revealing that one of the major causes of delays is signalling. It mentioned that processes are underway to address this. On the logistics side, the master plan could, in the long run, alleviate congestion in the Durban and Richards Bay ports, as well as on key corridors currently used to transport goods by road, such as the N3.
Mitchell Brooke of the Citrus Growers Association called on the department to act with urgency, warning that the industry is facing ruin due to escalating production costs. He told The Mercury that while the plan was welcomed, he was concerned that many parallel processes running alongside the master plan could delay the needed impact of moving from road to rail. “With these other parallel processes happening, it could take up to 10 years for the master plan to start coming online. What we are saying is that farmers do not have that time. With the rising cost of diesel, we need the rail to contain the costs of farming, or we could face bankruptcy,” he added.
He emphasised that the department needed to find a quick solution to alleviate pressure on the farming industry while the rest of the processes unfolded.
He stated that there was a need to bring in the private sector, warning that the government lacks the necessary funds to operate trains. He mentioned that they have been engaging with rail operators around the world, and it is estimated that the cost to run a single train could be as high as 37 million US dollars.
“Another challenge is the issue of security. We have been engaging with rail operators who say they cannot invest in infrastructure when there is no guarantee that the train will make it from point A to point B,” he said.
He urged the department to invest in rail, stating: “It is surprising to me to see all the billions that have been invested in roads when they should have been invested in rail.”
One of the delegates attending called on the government to involve business people for more investment in rail, stating: “Rail is the future; rail is for transporting goods, and roads are for us to come to such meetings as this one.”
Ngwako Makaepea, the DDG of Rail Transport in the Department of Transport, stated that the intention is to create an ecosystem where rail could serve as a backbone for logistics, emphasising that even truck owners have indicated they would buy into the plan, provided the system is reliable and consistent, and goods are delivered to their destination at the agreed time without delays.
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