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November 17, 2010

Grain and transport in South Africa

The transportation of grain and livestock in any country is a logistical headache, where the railway network was once the preferred method, and easiest solution to this problem. In South Africa they are facing such issues, due to the deterioration of the railways networks. More and more farmers are turning to the road system to move their animals and feed over long distances.

Some of the challenges farmers and transportation companies need to over come is the condition of the roads, the maintenance of the vehicles, distance and temperatures. Also you can deliver direct to where you need to. Transnet is the largest of the freight logistics group in South Africa and they are looking to raise and invest a US$ billion dollars to support continued infrastructure investment projects on the railway network by tapping into the global debt market.



Ports are also in need of investment, to keep the transport systems operating at peek condition and allowing the links from the railways to the ports to be maintained and ensure the transport of grains, feed and animals get to their destinations. This is an important factor for international exports too, as South Africa look to export to China, Korea, the Middle East and even Europe.

South Africa has about four million tonnes of excess grain for export, to the rest of the world, thou some can be used in biofuels and for animal feeds most will be for export.
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