BBR set for big railway project

JOHANNESBURG — South Africa’s Transnet Freight Rail hopes to finalise an agreement next month on rail co-operation between South Africa, Zambia, Zimbabwe and the Democratic Republic of Congo, allowing the copper-rich countries to increase exports through Durban.

Report by Business Day

The deal will boost trade in southern Africa, allowing a more efficient and cost-effective movement of goods across borders.

Transnet, National Railways of Zimbabwe, Zambian Railways, Société Nationale des Chemins de Fer du Congo (SNCC) and Beitbridge Bulawayo Railway (BBR) have been negotiating the terms of the agreement since last year.

Transnet Freight Rail executive manager for international business Nyameka Madikizela said it was recognised that a unified, cross-border railway system could be devised only by identifying inefficiency obstructing cargo flows.

“By February we should have signed the agreement. We all want to start as soon as possible,” Madikizela said.

A joint operating centre will be formed with the task of finding alignment among the partners to articulate co-operation.

“We have to know what volumes the network can handle now. If we take cargo from Congo to Durban . . .  our customers would like some certainty,” she said.

Durban’s port could accommodate an increase in copper exports, Madikizela said. It competes with Dar es Salaam port for copper exports because of the limited rail links between Congo and South Africa.

After the deal is signed, the joint operating centre will begin work immediately and develop co-ordinated traffic plans for the five operators.

Madikizela said it was not yet clear how much would need to be invested in infrastructure on the lines between Durban and Congo.
A similar programme started last August to improve trade on the Maputo corridor — between South Africa, Swaziland and Mozambique — has yielded gains.

Coal trains to Matola Terminal had increased by 75% to 35 trains a week, Madikizela said.

Department of Public Enterprises spokesman Mayihlome Tshwete said Public Enterprises minister Malusi Gigaba was eager to see State-owned companies such as Transnet benefiting from Africa’s growth and playing an increased developmental role on the continent.

Grindrod has bought an undisclosed stake in New Limpopo Bridge Projects, a partner of Mauritius-registered New Limpopo Project Investments, a shareholder in BBR.

This could have implications for private sector involvement in the unified railway system linking South Africa and Congo.

Grindrod financial director Andrew Waller said the freight and financial services group had bought the shares in New Limpopo Bridge Projects last year.

He declined to confirm whether Grindrod wanted to be the managing shareholder in BBR, replacing New Limpopo Project Investments.
New Limpopo Project Investments shareholders include Grindrod, Nedbank, Old Mutual, Sanlam and New Limpopo Bridge Projects — an investment company controlled by Israeli citizens Mordechai Tager and Zion Elani.

BBR is a privately-owned company providing a rail link between Beitbridge, at the border with South Africa, and Bulawayo.

Grindrod divisional CE of rail James Holley said BBR had been invited to participate in the Transnet Freight Rail talks about the north-south corridor.

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10 Responses to BBR set for big railway project

  1. Great Zimbabwe January 16, 2013 at 10:52 am #

    As for Zimbabwe, I don’t foresee much benefit here. How do you convince me that, the copper can be transported from as far as Katanga Province in DRC to Durban at a reasonable cost? Zimbabwe should scout for investors to upgrade the Beira Corridor which makes more strategic and commercial sense. South Africa is set to benefit here, firstly by redirecting the cargo from central and southern Africa to its port, where it will reap handling and storage fees. If we agree that regional integration does not follow dominating others and even causing de-industrialization of other countries, then the deal is not beneficial to African agenda of economic independence & integration.

  2. Duda January 16, 2013 at 1:49 pm #

    Zimbabwe should be able to earn transit fees on cargo in transit to SA. The volume of cargo passing through the country will increase and revenues will follow suit. Its like a tollgate.

    • Another Railwayman January 17, 2013 at 10:36 am #

      The NRZ receives millions in transit fees already-where has that money gone? This project will not benefit anyone especially NRZ employees who move BBR traffic without being paid!

  3. beneficiation January 16, 2013 at 3:11 pm #

    why should we celebrate something which will not benefit Africans.This building of the railway is just the same system our colonisers did,mine-export.They should have been negotiating building furnaces,manufactuer of copper products, to add value to the copper.It fetches much more at the international markets.Africa should move away from being exporter of resouces

    • Mwalimu January 17, 2013 at 10:12 am #

      After adding value to the copper, how are you going to move it to the international markets?
      The railway link is essential and also the beneficiation .

  4. Railwayman January 16, 2013 at 11:17 pm #

    we ar 7months behind in salary arrears and nrz is involved in dis doomed deals.we want our money

  5. Honai January 20, 2013 at 2:55 pm #

    If the Zambians and Congolese were clever, they’d push for the export of processed copper metal instead of copper ore which is what’s implied in this article. It’s also intriguing to note NRZ’s absence. They’ve lost out on a deal that could have earned them cash which, if used wisely, would have helped with their plans. Although I highly doubt any Zimbabwean parastatal ever comes through with its plans.

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  7. 'Taneta' NRZ January 23, 2013 at 11:35 pm #

    BBR reaping where it did not sow. What did they Build which they are Operating & will Transfer (BOAT) ? Is Transnet aware the supposeddly BBR section is a 20km/h Rhodesian railway line more than a century old. They must consult with Sata before engaging with the ‘Corrupt’ Zimbo-DUO.

  8. moncler jacken damen January 29, 2013 at 1:21 pm #

    i read your article and loave it so much ,thank you so much.

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