Agenda

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Agenda
1. Railroad Africas Role in the National
Commercial Port Policy. 2. Inland
Ports/Terminals 3. Commercial Port Users 4.
Policy Recommendations - Consultative
Committees 5. Competition - Ports 6.
Competitive Position of SA - Rail Transport 6.1.
Service Levels 6.2. Freight Dynamics 6.3.
State Land
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Draft White Paper on National Commercial Port
Policy Who is Railroad Africa and what role do
we play that directly connects us to the White
Paper on Port Policy?
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Railroad Africa is a Container Logistic Company
providing vital services via Rail and Road, in
and out of all Coastal Ports and Inland
Terminals. We are one of the main users of the
Commercial Ports and Inland Terminal for the
Conveyance of Import and Export cargo.
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Services Ex Commercial Port Inland Ports
/Terminals
Rail
Railroad Africa
Road
Warehousing
Documentation
Tracking Monitoring
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Intermodal Customers
Shipping Lines
Clearing Forwarding Agents
Railroad Africa
Importer
Exporter
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Main Services Providers
- Portnet - Spoornet - Owner-drivers
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Main Services Providers
Spoornet
Railroad Africa
Portnet
Ownerdriver
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Branch Offices
Durban
Johannesburg
Pretoria
Railroad Africa
Port Elizabeth
Cape Town
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Main Inland Ports/Terminals Ministerial Foreword
- Page 5 - Paragraph 2 1. We have carefully
reviewed/analysed the Draft White Paper on the
National Commercial Port Policy and fully
acknowledge the major role the Commercial Sea
Ports play in our transport industry, however our
concern is the exclusion of the Strategic Inland
Ports Terminals such as City Deep Pretcon
Terminals from this Draft White Paper. 2.
Inland Ports are the gateways to the Sea Ports as
well as to strategic regions industries. These
are vital hubs in the transport system. 3.
Infrastructure and development of the Inland
Ports should
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not be isolated by not being included in the Port
Policy document. It is equally important to have
an efficient Inland Port/Terminal as well as
Coastal Ports. 4. Governments focus is on
reducing long distance traffic by road. To
achieve this we must have efficient Inland
Ports/Terminals. 5. We need to create one
seamless operation linking the Inland Terminals
to the Coastal Ports using the same computer
systems. 6. We are of the firm opinion that the
main Inland Ports/Terminals must be included in
the Port Policy document.
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Commercial Port users Strategic Transport
Goals
We refer to Page 10, point 2 Enabling
customers requiring transport for people or goods
to access the transport system in ways which best
satisfy their chosen criteria. and Page 13,
bullet 3 Objectives of the National Commercial
Ports Policy To enable Port users to access to
Port system in the most efficient way possible.
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And page 20, point 7 - paragraph 2 It also
translates into a demand for ready access to the
transportation information that is needed by all
parties to the various transactions involved in
trade.
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Port Users
Who are the main Port users? The main Port users
are- - Importers - Exporters - Shipping
Lines - Intermodal Companies - Clearing
Forwarding Agents - Others
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Port Users
Shipping Lines
Clearing Forwarding Agents
Exporters
Port
Intermodal Companies
Importers
Others
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Why is it important to determine who the Port
users are? 1. Portnet is currently developing
pricing policies that make the Shipping Lines the
sole users of the Port. User pay
Principal i.e. Portnet is forcing the other
users to pay the shipping lines directly for all
landside costs. 2. Currently the Port users, as
described earlier, pay for all land side services
provided by the Port directly to the Port. 3.
The new pricing policy excludes all other users
and is in conflict with the goals and objectives
of the National Port Policy.
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4. The current application of the pricing policy
will create monopolies between Terminal Operators
and Shipping Lines whose costs are paid for by
the other Port users as previously described.
Port users must be given the choice of how
payment is made for landside costs. 5.
Currently we face a serious problem with
communications and/or tracking. The proposed
pricing policies will further compound said
problem by restricting vital information to the
industry.
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6. Portnets current tracking system is limited
and restricted to Shipping Lines only. The
system does not cater for the needs of the
different customer groups, i.e. Importers,
Exporters, Clearing and Forwarding Agents,
Intermodal Companies. 7. The information
required can easily be made available by the use
of the Internet/EDI.
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Policy Recommendations
Consultative Committees - Page 18, item 2
It is our suggestion/recommendation that the
Consultative Committee involves all Port users
and not only Shipping Lines and must include
Labour Committees.
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Competition
National Development Strategy for Commercial
Ports - Page 18, item 3 Competition amongst
Ports is vital. This will improve Productivity
and drive prices down. We are also pro intra
Port competition. E.g. Volvo Traffic - switched
from Durban to Port Elizabeth due to service
levels. Government must not restrict Port to Port
Competition.
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Challenges we face - Competitive Position of SA
- Rail Transport Page 22 - Section 3.7 1. It is
very important for the forum to be aware that
Spoornet Intermodal have suggested a proposed
increase of up to 30 for containerised traffic
without any discussion and motivation for such
increases. This will impact negatively in our
competitiveness in the Global Market. 2. It is
our recommendations that increases, are market
related and in line with item 3.7, page 20, of
the Port Policy.
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3. The design/formulation of the current pricing
policy by Spoornet General Freight Business for
containers does not allow Small Businesses to
grow and it continues to protect Previously
Advantaged Companies. 4. We want to see the
leveling of the playing fields that create equal
opportunities for Intermodal Companies like
Railroad Africa after all we are the marketing
agents of Spoornet.
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Service Levels - Inland Ports/Terminals 1.
Working hours of the main Inland Terminals are
creating impediments/restrictions. 1.1. No
access to computer systems - Manpower over
weekends 1.2. Access to information between
Spoornet and users is not on line and not
easily available. 2. Shortages of Rail-wagons
have resulted in many short-shipments.
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3. Derailments have played havoc with our
Transport System. The direct cause of this is
due to poor previous planning and the lack of
infrastructure investments. 4. We must create a
consultative committee for Rail/Port users to
discuss matters of common concern. 6. We are
experiencing delays in obtaining new rail rates
of up to 5 days for all traffic.
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6. Too many Rail containers are being
pilfered. 7. Claims are not being processed
with speed. Delays of up to one year are being
experienced. 8. The CEO of Spoornet is a man who
has a vision for the future. Therefore, it is
critical that his vision is accepted/implemented
by the structure of Spoornet.
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Freight Dynamics
1. Freight Dynamics is becoming a destructive
competitor in the Transport Industry by reducing
Transport rates resulting in safety standards by
existing Road Hauliers being compromised to stay
in business. We consider this to be an abuse of
State assets to gain market share. Once again
this is destructive competition. It is our
opinion that Freight Dynamics should be quietly
removed from the Market. 2. We understand that
Freight Dynamics have recently approached
Spoornet for a Rail contract. We also consider
this to be destructive competition and must not
be encouraged.
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State Land
1. We are concerned that the lease of Prime
State land (Transnet), in close proximity to
Ports and Rail Terminals, are in the hands of an
individual (Company), and needs to be
investigated.