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Transnet – Auto industry to work closely on imports and exports

Home Manufacturing & Processing Automotive Transnet – Auto industry to work closely on imports and exports

COINCIDING with Auto Week 2024, Transnet and Naamsa | The Automotive Business Council, signed a three-year collaboration agreement. Transnet said that this strategic partnership aims to facilitate the import of critical production components and export of assembled vehicles to global markets, both entities play a critical role in the promotion and expansion of international trade for South Africa.

Through this partnership, both entities will jointly constitute a bi-lateral engagement committee “War Room” to assess, advise, resource and implement key initiatives to support activities of mutual benefit. Through the regular engagement of senior leadership and key representatives from both organisations, it is expected that a robust information-sharing hub/platform will support strategic initiatives to drive improved outcomes for both entities.

Transnet said Naamsa | The Automotive Business Council and Transnet will jointly develop and implement a Crisis Mitigation Standard Operating Procedure (SOP) which both entities will implement when specific urgent challenges are encountered and allocate appropriate human resources to address potential bottlenecks.

“This agreement entails, amongst other initiatives, collaboration on potential public-private sector partnerships; joint investment considerations; related opportunities to fully develop the South Corridor (Reef and Gqeberha). All of these are primarily intended to enable movement of automotive units and parts on rail, thus easing congestion at the ports and reducing reliance on road transportation. This is in line with the Gqeberha/Ngqura Port Masterplan,” according to Transnet.

Both entities will also jointly pursue a solution through Maputo Port as the preferred avenue for used vehicle imports in transit to African countries which would ease congestion at the Durban Port. This initiative will further address the illegal vehicle imports entering the South African market which negatively impact the fiscus via lost vehicle taxes, and which ultimately constrain the new vehicle market.

During Auto Week 2024, Naamsa said that during the panel discussion “Infrastructure as a Lever for Global Competitiveness” delegates heard about how successful collaboration between the automotive sector and Transnet can drive the SAAM 2035 objective of supporting R400 billion in exports.

Naamsa said the MoU’s strategic intent is to develop and convene a naamsa Transnet Auto ‘War Room’ to drive the collaboration, consolidation and sharing of key data between organisations to support the implementation of strategic initiatives, monitored by KPIs for rail performance, slot availability/capacity and rolling stock availability and utilisation.

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