Railways

IMPORTANCE OF RAILWAYS ON SOUTH AFRICAN ECONOMY

INTRODUCTION
According to Jose Burman, an author, the first railway was from Cape Town to Wellington and was worked by a small locomotive in 1859. The first passenger-carrying service was a small line of about 3.2 kilometres built by the Natal Railway Company, linking the town of Durban with Harbor Point, which opened on 26 June 1860. Railways are a climate-smart and efficient way to move people and freight. Railways promote economic growth while cutting greenhouse gas emissions. They are a clean and compact way to move millions of passengers and millions of tons of goods across countries and continents.

POSITIVE IMPACT ON PEOPLE/ECONOMY

The introduction of the railways enabled a substantial reduction in costs of transport, leading to lower prices of goods in shops. South African railway system is set to flourish under a boost of record investment aimed at turning the country into a key player in the global freight industry. “The South African government’s proposed policy interventions to allow third-party access to South Africa’s rail infrastructure provide an opportunity for growth, transformation and industrialization,” said Enterprises Minister Pravin Gordhan.

South Africa’s President, Cyril Ramaphosa, highlighted in his presentation of the Economic Reconstruction and Recovery Plan (ERRP) to Parliament in October 2020 that railways lie at the heart of reviving South Africa’s economy. The current market demand can make it hard for shippers to find a truck when they need it without paying for an arm and a leg. Since rail transport can be more efficient and doesn’t have the same kind of limitations, this is a great way for shippers to find capacity.

IMPROVEMENT OF THE ECONOMIC OPERATIONAL EFFICIENCY OF FREIGHT ROAD AND RAIL TRANSPORTATION IN SOUTH AFRICA

According to the Texas International Law Journal, the government spent millions of dollars building a high-speed rail network that, while handy and useful, primarily serves the middle and upper classes due to the prohibitively costly fare levels. Moreover, the less expensive Metro Rail system has not received the necessary funding or renovations, causing it to keep deteriorating. Even if cities had better electricity systems, the thousands of people who lived in shantytowns on the fringes of cities did not benefit from them. Ten years after the games, the wealthiest are still becoming richer while the poor keep getting poorer.

South Africa is looking for ways to increase freight transportation while increasing the economic and operational efficiency of road and rail transportation. In the findings and investigations, freight road is more competitive than freight rail, and domestic intermodal freight transportation is advised to improve economic and operational efficiency.

CONCLUSION

With infrastructure needing repairs or replacement, partnerships with the private sector and other players are critical. Rail has long been the backbone of the South African logistics and transport Value chain and will become even more critical in a post-COVID-19 environment. It is cheaper, cleaner and more efficient than road transport and lends itself to carrying cargo in a sanitized, minimal-contact environment.

 

Lindokuhle Mabuza

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