For The People

Kumba Iron Ore results

The Gamagara Corridor Chamber of Commerce and industry and all its affiliated business chambers from Postmasburg, Kathu,Olifantshoek, Kuruman, Danielskuil and Griekwastad , calls upon the Northern Cape Government to engage Transnet to ensure that it meets its contractual obligations and that it must set up an immediate plan to mitigate derailments on its iron ore railway line between Saldanha and Sishen.

This statement comes in the wake of the average throughputs decrease on the iron ore railway line due to derailment and we have already seen devastating impact on one of the several smaller operations in the iron ore corridor where about 300 hundred workers stand to lose their jobs and further devastation as some of the member businesses stand to lose valuable contracts.

The government has not met its targets where Transnet was to increase its Capital Expenditure Programme (Capex) from R110 billion to R300 billion; the goal was to ensure that the rail giant meets future demands through investments in rail, ports and pipeline infrastructure.

The above was further enunciated in what was known as integrated strategic projects and in the case of our Province it was known as SIP five (5), and it was aimed at Integrated rail and port expansion and Expansion of iron ore mining production and beneficiation.

Lack of capacity at Transnet, fraud and corruption has resulted in the abandonment of plans to expand the iron ore railway line and has negatively affected our participation in the growing world demand for iron-ore which contributes to the domestic economy with investments and employment associated with mine expansions and new railway rolling stock and infrastructure.

The demand market strategy of Transnet – which would have seen traffic volumes rise from 200 to 300 million tonnes per annum by 2019 have been significantly revised downwards, and, at the end of the financial year March 2018 they were nowhere near the target, with national papers peppered with news of the rot at our SOEs, and chief among those Transnet and Eskom.

At the end of the financial year March 2018 they were nowhere near the target, with national papers peppered with news of the rot at our SOEs, and chief among those Transnet and Eskom.

Governance at Transnet could be described at best pathetic, and at worst dysfunctional with the everpresent issue of state capture.

With our slow GDP growth and lack of bureaucratic will-power, we are street behinds on seeing those tonnages being railed away from our mines and Transnet Freight Rail (TFR) having the capacity to do that.

We have noted and welcomes the initiative of the Provincial Government, the DTI and the ports authority of South Africa and the to establish and built a port at Boegoeberg as this will ensure expedited export of minerals, we further call upon the Provincial Government to ensure that a beneficiation strategy is adopted and that all role players work jointly to ensure that a plant is set up along one of our river corridors in the Province – this will yield long-term positive growth for the Province and will result in the provision of quality jobs.

What is needed is decisive action, this matter must be raised at the highest level and we call upon the Premier to elevate this matter to the Presidential Infrastructure Coordination Committee as a matter of extreme urgency and further to that all role players to be drawn together to give further input and seek a resolution out of the current impasse.

Statement issued by: Fezile Kies, Chairperson.

Enquiries: Allister Davids – Spokesperson Cell: 081) 443-9489 Email:

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