Government must bet on rail transport

In recent times drivers on South African roads have had to learn the skill of avoiding hazards in the form of potholes in the roads where the tar has simply disintegrated. Those familiar with the roads riddled with potholes usually get to their destinations without much drama. However, some unlucky soles have found themselves driving over and into potholes only to cause serious damage to their vehicles. Most insurance policies were not written to accommodate damage from potholes specifically and as such some motorists have tried to claim from their insurance for pothole damage, without success. In my view, the insurance companies ought to consider adjusting their policy documents to accommodate damage from potholes on the one hand and on the other hand, government and the city councils must simply improve their budgeting regarding the repairing of potholes. There are many theories concerning the causes of potholes on South African roads. One theory is simple lack of proper routine maintenance combined with the heavy rainy weather in some parts of the country, preventing maintenance work. Another theory is the increased traffic on the South African roads, specifically traffic of heavy vehicles carrying all sorts of goods. Perhaps a combination of these theories is the real cause for the damage to our roads.

Buffet bets on rail

Towards the end of last year, Berkshire Hathaway an investment company run by billionaire investor Warren Buffet announced that it would acquire the remaining stake it does not already own in freight rail operator, Burlington Northern. It is estimated that 40% of all freight in the US is transported via rail and Burlington which has a large share of the rail market, transports mainly, coal, grain and canned beverages. Berkshire Hathaway has folked out a staggering US$26 billion to make Burlington a wholly-owned subsidiary, an invest which many see as Buffet’s great faith in the freight rail business. When asked in an interview on one of the business news channels as to why he made the investment, Buffet said he believed that as the US population grows demand for goods would grow and as demand for goods grows, freight volumes would also grow accordingly. By some estimates, of all the freight and cargo transported across South Africa, 60% is transported by roads with the remainder split between rail, air and sea. South Africa has a fairly robust rail network system and in my opinion, there should be no reason why more of the freight is not transported by rail. The reality however is that South Africa’s only freight rail operator, Transnet Freight Rail (TFR) has not been employing new rolling stock at a fast enough rate to meet the freight transportation demands of the country.

Rail is efficient form of transportation

In s statement released to announce the Burlington acquisition, Berkshire Hathaway pointed out that, “American railroads move 40 percent of our nation’s freight, but account for just 2.2 percent of all transportation-related greenhouse gas emissions.” So not only does rail reduce the pressure on roads because of less traffic from heavy vehicles but rails seems be an environmentally friendly transportation alternative for transporting goods. Government, through the department of Transport must demonstrate its political will and put pressure on Transnet to increase its capacity to carry freight as a matter of urgency.