Volkswagen and other automakers operating in South Africa are in talks with the state logistics company to revive a dilapidated rail line between the countrys commercial hub and a car export terminal over 1 000km away. The companies, which include Isuzu Motors, would like to hire a private operator to run trains on the line between the Gauteng province and the city of Gqeberha, which would transport vehicles in both directions.
Companies such as Volkswagen and Isuzu currently rely almost entirely on trucks to get their vehicles from their plants near Gqeberha to Gauteng, South Africas biggest car market. The line would also benefit those with plants in Gauteng, such as Ford Motor Co. and BMW AG, which could use it to move cars to the port in the coastal city as an alternative to the congested terminal in the city of Durban.
'The majority of the domestic market sits in Gauteng province,' said Martina Biene, chairwoman and managing director of Volkswagen South Africa, in an interview. The company currently transports all its cars on trucks, which take eight vehicles at a time, and that adds to road disasters and carbon dioxide, which adds costs, she said.
Automakers are the latest industry to seek a solution to the collapsing freight-rail service offered by Transnet, which has reduced coal and iron ore exports to multi-decade lows. The state firm in March published a document that lays out proposed terms and conditions for private trains to operate on its tracks for the first time.
Companies such as Volkswagen and Isuzu currently rely almost entirely on trucks to get their vehicles from their plants near Gqeberha to Gauteng, South Africas biggest car market. The line would also benefit those with plants in Gauteng, such as Ford Motor Co. and BMW AG, which could use it to move cars to the port in the coastal city as an alternative to the congested terminal in the city of Durban.
'The majority of the domestic market sits in Gauteng province,' said Martina Biene, chairwoman and managing director of Volkswagen South Africa, in an interview. The company currently transports all its cars on trucks, which take eight vehicles at a time, and that adds to road disasters and carbon dioxide, which adds costs, she said.
Automakers are the latest industry to seek a solution to the collapsing freight-rail service offered by Transnet, which has reduced coal and iron ore exports to multi-decade lows. The state firm in March published a document that lays out proposed terms and conditions for private trains to operate on its tracks for the first time.
