- - ­

- -­

INTERMODAL CARGO TRANSFER POLICY

1.1 THE POLICY PROPOSAL

(a) '7he Department of Transport is making a policy proposal to migrate, where possible, certain categories of cargo from road haulage back to rail haulage. Envisaged in this policy

proposal are all categories of cargo that can be considered to be heavy, abnormal, dangerous, bulk, long, threatening the environment, can be accommodated in rail, unlawful to be on road in tenns of transportation legislation, a combination of all these, and those that will be determined by transport officials from time to time.

(b) The definitions and interpretations of these categories will be based on the standards applied by the Standards South Africa, e.g. when we refer to dangerous and hazardous materials (HAZMA TS), we will be referring to materials as defined by SABS Code 0228 and the International Maritime Dangerous Goods Code.

(c) The commodities which will be subjected to this policy will include, "but not limited to, animal feeds, chemicals, clay, concrete and glass; coal; containers; explosives; fertilizers and pesticides, foods and agricultural products, gravel and crushed stones; machinery, motor­vehicles, metal and metal products, non-metallic minerals, petroleum and petroleum

product, pulp paper; timber; transportation equipment; trucks and intermodal equipment waste and scrap metal, and any other non-fhreatening cargo that will be transported in extraordinary bulk.

(d) Some commodities may not be subjected to this policy, but their points of destination and

        their bulk, may require that they are transferred to rail.

(e) There wHI be a need to synchronise the classification of these categories accorcflng to the manner in which they are categorized by Statistics South Africa namely, agriculture, hunting,

forestry and fishing; mining and quarrying; manufacturing; electricity, gas water; and construction.

1


 

-- ­

2.         IMPLEMENTATION ISSUES

2.1 The Department of Transport will seek ways and means to reduce and reverse the migration of certain categories of cargo from rail to road. The main aim is to reduce Government's obligations to the high road maintenance and rehabilitation costs.

2.2 The Department will use the National Freight Logistic Strategy (NFLS) to detennine the necessary split between the modes of transport for an effective logistics system.

2.3 In instances where 1here is an unfair balance of cargo ttom one mode to another, and such an unfair balance is at cost to the State, 1he Department of Transport will reserve the right to review its deregulation of road transport decisions.

2.4 In order to protect 1he road infTastructure and reduce the costs of road maintenance, 1he DOT will reduce axle loads and determine 1he appropriate lengths for trucks on 1he road. This will be done wi1hin the parametres of the Overload Control Strategy.

2.5 The DOT will work with private road haulers to hannonize operations along the supply chain in such a manner that complaints from customers are minimized Seamless operations ttom point of origin to point of destination will be encouraged. .

2.6 The Department will work in tandem wi1h 1he Department of Labour, 1he Department of Health and road haulers, driver trade unions and representative bodies to reduce 1he problems in all aspects of health, labour and operations.

2.7 Subject to 1he availability of Treasury funding, Government will provide the necessary funds for 1he revival of both the fixed and the rolling stock infrastructure.

2.8 Private investors and public private partnerships will be encouraged to be part of

            the provision and the revival of rail services and equipment.                           .

2.9 The Department of Transport will set 1he process in place to establish 1he Road Quality Management System (RQMS) as envisaged in 1he White Paper on National Transport Policy of 1996.

2.10 This policy will not apply in instances where no rail exists. This will mean 1hat the Department (relevant units in brackets) will work-with the rail and road haulers on the following issues:

(a) Commissioning a Pre-feasibility study to take stock of categories of cargo, their origins and destinations and to quantify supply and demand for haulage. (Freight Logistics and Corridor Development)

2


 

- -    --     -     ­

(b) Detennine which rail runs parallel to the road network (Integrated Planning and

      Intersphere Co-ordination)

(c) Calculate the tonnage splits between the two. (Freight Logistics and Corridor

      Development

(d)Calculate a cost-benefit analysis of the shift from road to rail (Economic Analysis)

2.11 The Department of Transport will work with relevant authorities to avoid the building of suburbs near railway lines that will put the communities at risk of hazardous spillages.

2.12 In relation to the transportation of hazardous substances, the Department will work closely with the Basel Convention Regional Centreffhe Rotterdam Convention and the Stockholm Conventions to develop, review and synergize its activities relating to the transportation of these categories of cargo.

2.13 In the event that the building of such suburbs and housing estates cannot be avoided, 1he Department will work with relevant authorities to determine a distance between suburbs and rail lines 1hat will be distant enough to minimize the risk to 1he communities in the unlikely event of hazardous spillages.

2.14 Rail sets carrying commodities of a toxic or hazardous nature shall be given preference passage rights so 1hat at no, or at minimal times, shall such cargo be left idle, standing near neighbowhoods or presenting a danger 1hrough slow

            movement and unnecessary delays.                                        ­

2.15 Each rail trader and operator shall ensure 1hat the carted material is con-ectly identified through 1he nonnallabelling system and any o1her system 1hat may be

            detennined by the Department of Transport from time to time.                                   ­

2.16 The Department will infonn and update 1he rail haulage industIy on the latest

            available technologies in the rail transportation system.

2.17 The Department of Transport (Research Division) will undertake a comparative

            study of the rail and road debates in o1her countries.

2.18 The Department will establish a Rail Promotion Agency or pending on the necessary procedures for 1he establishment of such an agency, the Department will perfonn such a function under the joint responsibility of the Freight Logistics and the Corridor Development division and Communications.

2.19 The Department will encourage the participation of the private sector in the operations and investment in the rail infrastructure 1hrough the public private partnership, build and operate and concessioning mechanisms.

3


 

-    --   --­

- -­

2.20 Government will encourage new SMME entrepreneurs into the main stream of the transport industry by facilitating discussions between them and both developmental and capital finance institutions.

2.21 Rail operators will be obliged to ensure that safety and security measures are applied in the transportation of such goods ftom point of origin to point of destination or/and at break of bulk points.

2.22 In instances where there will be a multi-modal or intermodal split or operations, the necessary transhipment and commodity transfer arrangements must be made ahead of schedule such that transfer and transhipment times are minimized.

2.23 The Department of Transport will ensure that the restructuring of state-owned

            companies does not compromise the objectives of this policy.

2.24 The Department of Transport will work with National Treasury to develop proper user-pay charges frameworks for all taxes, costs and charges for the road fteight transportation

2.25 The Freight Logistics and Corridor Development will set a task team composed of the fteight industry players and government to determine which products and tonnage limits under the above-mentioned broad commodities shall be subjected to this policy.

4