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The romance of rail

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 4 of a 12-part series.

The romance of rail.
The romance of rail. Freepik

…continued from Part 3.

Despite the complexity of the rail logistics business, Holley shares his personal affection for the industry. He recalls growing up in South Africa with a “romantic” connection to locomotives. This romantic view of trains, however, does not mask the challenges of the industry. Rail logistics is a highly intricate business, involving massive capital investment, rigorous maintenance, and complex supply chains. From sourcing parts globally to dealing with the skills deficit in the industry, operating rail services requires immense attention to detail and high operational standards.

Holley highlights the challenges of maintaining trains and locomotives, especially given the significant maintenance required to ensure optimal functioning. Traxion has faced the issue of a skills shortage, which led them to establish a rail training centre over 20 years ago. This initiative has been instrumental in addressing the skills gap by training over 700 drivers and more than 50 Red Seal technicians, who are highly certified in South Africa’s rail industry.

The logistics and operational complexity extends beyond maintenance, as regulatory compliance, particularly in South Africa, is stringent. Traxion operates within both private and state-run networks in South Africa, and safety regulations are of utmost importance. For instance, they handle closed private networks used for the mining industry, which require strict adherence to safety protocols. The high level of regulation adds another layer of difficulty to running a rail business in South Africa, though it is necessary for ensuring safety and operational reliability.

Despite these complexities, Holley remains passionate about the rail sector. He notes the deep respect and affection people in the industry have for the work they do, describing how people in the rail business often stay in the field for decades, driven by a sense of pride in maintaining and operating one of the world’s most iconic forms of transportation.

The rail logistics industry in Africa is undergoing significant change, driven by the growing involvement of private operators like Traxion. As the African cold chain grows and more countries open their rail networks to private companies, competition increases, but so does the potential for growth and improved efficiency. However, operating in this sector is far from easy. It requires significant investment, strict maintenance schedules, complex international cold chains and a highly skilled workforce.

Traxion’s success in South Africa and across the continent demonstrates the vital role that private sector involvement plays in the growth of the rail industry. By focusing on high-quality service, skilled labour, and strong partnerships with public sector stakeholders, Traxion has become a leading player in African rail logistics. Though the romantic notion of trains will always remain, the reality is that running a successful rail business is a complex, highly regulated and competitive challenge—one that Traxion embraces head-on.

Continued in Part 5…