Road to Rail Migration01 March 2017
Collaboration is the key to a Landmark Road to Rail Migration of Cargo
Barloworld Logistics, ArcelorMittal South Africa, Transnet Freight Rail, Newlyn Properties and Grindrod Terminals collaborate to launch a ground-breaking initiative to convert road traffic to rail.
Dateline – On Friday the 24thof February, Barloworld Logistics together with Transnet Freight Rail (TFR), ArcelorMittal South Africa (AMSA), Grindrod Terminals and Newlyn Properties celebrated the opening of the Elandsfontein Intermodal Terminal.
The terminal recently received railed cargo for the first time in almost 4 years, and is the result of a 6 month project to revitalise these facilities between Barloworld Logistics and Newlyn Properties. To date, some 36,500 tons of AMSA products have been received at the terminal and warehouse.
“This initiative is the result of a successful collaborative effort between four key players, each leaders in their respective sectors, combined with AMSA’s willingness to take the first step” says Mathys Enslin, Managing Executive at Barloworld Logistics. “It is a prime illustration of how smart partnerships and close collaboration can achieve large scale results in a short period of time, and I commend each party on their willingness to break the mould and devote valuable resources to such a critical endeavour.”
Through the implementation of well managed rail supply chain solutions, cargo is converted from road to rail, service delivery is enhanced and the time to market is significantly reduced. In addition, carbon emissions and road congestion around the key industrial locations is dramatically decreased.
With the Elandsfontein Intermodal Terminal now fully operational, the annual rail delivery of some 700,000 tons of AMSA products from various production plants will ultimately result in the reduction of over 42,000 long-haul road vehicle movements.
“While there are numerous cost benefits to all stakeholders, arguably the most important benefit is the fact that we are making South Africa more competitive by enhancing and developing the nation’s freight system,” says Enslin. “At Barloworld Logistics, we are uncompromising in our commitment to deploy our rail supply chain solution expertise to supply chains and are developing additional intermodal facilities in collaboration with TFR and key partners.”
Barloworld Logistics, specialists in developing smarter supply chain processes, has partnered with TFR over the past few years to create effective solutions in converting road volumes to rail.
These conversions are integral to Transnet’s Market Demand Strategy (MDS) which has the ultimate aim of making our country more globally competitive by delivering cost efficient world-class rail services.
“We are proud to be a part of such transformative projects and look forward to achieving a lot more, in collaboration with smart partners such as AMSA, TFR and Newlyn Properties,” adds Enslin. “We are all very closely aligned with regards to our vision for and commitment to South Africa’s economic and industrial development.”