The government will spend R15 billion to upgrade the rail system over the next 15 years, but Toyota is considering transporting more of its vehicles from Durban to Gauteng by road because of Spoornet’s uncompetitive pricing, a report claims.
The government will spend R15 billion to upgrade the rail system over the next 15 years, but Toyota is considering transporting more of its vehicles from Durban to Gauteng by road because of Spoornet’s uncompetitive pricing, a report claims.
According to , information was leaked by two Toyota employees following reports that Highveld Steel and Vanadium had started shipping its products through Maputo’s port because of frustration at Spoornet rail services.
The N3 between Durban and Johannesburg, which handles 60 per cent of South Africa’s exports and 40 per cent of imports, is severely underserviced by Spoornet and is also 43 per cent more expensive than road transport, the report said.
A stuff member at Toyota SA’s Durban plant, speaking on condition of anonymity, confirmed the manufacturer was looking at cost-effective alternatives to rail transport for Gauteng-bound vehicles, but said the shipping of export vehicles to the nearby port of Durban would not be affected.
Spoornet has been widely criticised for its inefficient rail services and high tariffs, which will be compounded by proposed price increases that could be as high as 40 percent in some cases.
