Friday, October 25, 2013

Multimodal Deal for Rail Freight Carrier and Logistics Outfit

Aim to Minimise Costs and Maximise Service Offerings
Shipping News Feature

SOUTH AFRICA – Transnet Freight Rail (TFR) and Barloworld Logistics have signed a Memorandum of Understanding (MoU) aimed at exploring multimodal collaboration opportunities within the logistics and transport sector. By working together the two companies will aim to maximise road and rail logistics capabilities to reduce road congestion and greenhouse gas emissions and lower cargo transport costs for customers.

The initiative combines TFR’s efficiency in long haul rail transportation with Barloworld Logistics’ knowledge in road freight logistics, distribution and end-to-end value chain management. This partnership will facilitate joint development of multimodal logistics services in support of Transnet’s ‘road to rail’ strategy, resulting in a reduction on the adverse impact of rail-friendly freight on the national road infrastructure in addition to reducing the cost of logistics for cargo owners throughout Southern Africa. Steve Ford, CEO of Barloworld Logistics, said:

“We are delighted to engage in this smart partnership with TFR. We have long believed that road and rail should work together. We see this as an excellent opportunity to offer our clients and the wider SA market access to rail solutions as part of their supply chain strategy and optimisation targets.’’

Both TFR and Barloworld Logistics aim to divert freight currently transported via road to multimodal combinations with the promise of a more efficient and cost effective end-to-end solution. The two companies intend to join forces in order to target existing volumes within their groups across various industries. Siyabonga Gama, who was suspended then sacked after allegations of corruption, but was later reinstated Chief Executive of TFR, commented:

“The MoU makes it possible for TFR and Barloworld Logistics to collaborate to benefit the South African economy through resolving previous competitive obstacles.”