By Eamonn Ryan, derived from the podcast
In a podcast hosted by Peter Bruce of FM, Jamie Holley, CEO of Traxion, shared insights into the challenges and opportunities in the South African rail logistics sector. This article explores the challenges and opportunities within South Africa’s rail system, offering insights that are highly relevant to the cold chain industry. This is Part 1 of a 12-part series.
With a focus on revitalising rail infrastructure, increasing private sector involvement, and improving freight movement efficiency, the discussion touches on the importance of reliable, cost-effective transport solutions for industries like cold storage and perishable goods. As the rail network undergoes reforms, improvements in efficiency and capacity could significantly impact the logistics of temperature-sensitive products, ensuring more reliable delivery systems for the cold chain sector in South Africa.
He highlights the challenges posed by outdated infrastructure, limited access, and the need for regulatory adjustments while emphasising the potential for rail to regain its competitive edge. Holley’s insights offer a glimpse into the future of rail in South Africa and the opportunities that lie ahead for both the economy and private operators.
South Africa’s rail logistics sector has faced significant challenges in recent years. Once a powerhouse in transporting freight, South Africa’s rail system has seen a marked decline, with freight volumes plummeting from 226 million tons/year in 2017-2018 to just 152 million tons in 2022-2024. Despite this, the South African government, through the Department of Transport, is actively addressing these issues, with the release of the Network Statement outlining a comprehensive plan for infrastructure upgrades and increasing train capacity. The private sector, including companies like Traxion, plays a crucial role in the revitalisation of this sector, according to the Statement.
Traxion, a rail services company with operations across nine African countries, manages over 110 locomotives and has a long history of providing high-quality rail solutions. Its focus is exclusively on rail freight, and its success in other African nations offers valuable lessons for South Africa.
A look at Traxion’s operations across Africa
Holley began by explaining Traxion’s extensive operations in Africa, highlighting the company’s fleet of 60 IR locomotives and servicing an additional 50 locomotives. With operations in seven countries, expanding to nine soon, Traxion is making a significant impact on rail logistics across the continent.
One standout example is the copper train that Traxion operates between the Democratic Republic of Congo (DRC) and Tanzania. This service, running from the logistics hub of the DRC to the port of Dar es Salaam, is a prime example of Traxion’s ability to provide reliable rail services in difficult jurisdictions. The company has invested in new locomotives and high-quality wagons, achieving excellent reliability even in less-than-ideal infrastructure conditions.
The copper trains, which carry 1 500 tons of copper per trip, have proven to be faster than trucks, thanks to efficient operations and pre-cleared freight. Despite the challenges of working with government-owned infrastructure and logistics systems, Traxion’s commitment to quality and reliability has allowed them to build strong partnerships with both public and private sector stakeholders.
“We have high-quality locomotives, we have a crew that stays with the train, so we don’t have crewing issues. We achieve extremely high reliability across our trades,” Holley explains.
This collaboration between governments and the private sector has proven beneficial for both parties. Over the past five years, Traxion has generated millions of dollars in revenue for the Tanzanian and Zambian governments, demonstrating the potential for economic growth when private companies are allowed to operate efficiently on state-owned tracks.