Inadequate rail capacity has pushed more trucks, and costs, onto municipal roads, which are steadily deteriorating. (Waldo Swiegers/Bloomberg/Getty Images)
The wear and tear at Transnet has been thrown into sharp relief in recent weeks, with many pointing out just how much the state logistics company has cost the national economy.
Commentary on Transnet’s economic cost has, in the main, focused on how the entity has constrained exports, preventing South Africa from fully cashing in on the commodity boom. The Minerals Council of South Africa estimates that the country lost out on R50-billion in export revenue because of Transnet’s inadequate rail and ports capacity.
But there is another sacrifice South Africa is making as a result of Transnet’s deterioration: the state of the country’s roads.
Roads buckle amid rail’s decline
Experts at last week’s South African Road Federation regional conference painted a grim picture of the state of the country’s road network.
There, it was revealed that there are 10-million more potholes than five years ago, bringing the number up to an eye-watering 25-million. According to the South African National Roads Agency (Sanral), it costs between R700 and R1 500 a square kilometre to fix one pothole, depending on its size.
In March, Transport Minister Fikile Mbalula noted in a written response to a parliamentary question that the country faced significant road maintenance backlogs. In 2013, the value of the backlogs was estimated to be R197-billion. This figure, Mbalula said, is estimated to have increased since.
According to Mbalula, traffic is the most important factor influencing the state of the country’s paved roads. The performance of paved areas is mostly influenced by the loading magnitude, configuration and the number of load repetitions by heavy vehicles, he said.
The number of tonnes moved on rail contracted for the sixth consecutive month in August, according to data released by Statistics South Africa this week. Over that same period road freight recorded six consecutive gains.
The data is indicative of a longer-term trend. Compared with six years ago, the number of tonnes transported by road has increased by just over 53%. Road freight declined in 2020 amid the economic onslaught of the pandemic but it has since more than recovered.
On the other hand, rail freight has remained more-or-less stagnant over that period, slowly decreasing after 2019. There are now 25% fewer tonnes moved by rail than there were in 2016.
In their rating decision on Transnet earlier this year, analysts at S&P Global noted that the entity’s inability to provide the rail volumes required by its customers raises the risk of them turning to alternative transportation channels.
“While more expensive for bulk commodity producers, we have seen increased use of road freight and non-Transnet-controlled ports in neighbouring countries for bulk commodity exports, as companies wish to capitalise on supportive commodity prices,” they said.
Sanral is responsible for maintaining the country’s national roads. But the country’s cash-strapped municipalities also shoulder some of the burden.
Budgets burdened
The City of Johannesburg, for example, is responsible for 12 431km of tar road. Tshepo Mahanuke, the chief executive of the Joburg Roads Agency, said the last comprehensive study on the state of the economic hub’s roads was conducted in the 2016-17 financial year and found that more than 32% were either in poor or very poor condition.
Reasons for poor road infrastructure include inadequate maintenance, poor stormwater drainage and overloading by heavy vehicles, Mahanuke said.
The number of potholes reported daily has increased year on year, because the majority of the roads in the Johannesburg network have reached their 15- to 25-year lifespan, Mahanuke said. Most of the city’s roads are older than 30 years.
Roads that are safe and in good condition are critical for economic growth, Mahanuke said. “A quality road network is not only vital to improving connectivity across the country (as Johannesburg is a central economic hub that connects key arterial routes, including cross-border routes) but it can also reduce congestion and bolster all businesses, including small businesses, through an accessible, efficient and safe road network.”
It is estimated that the city will require R1-billion per financial year to address Johannesburg’s ageing road infrastructure backlog, Mahanuke said.
The city has allocated R100-million for road resurfacing, R110-million for bridges and R206-million on stormwater projects in this financial year.
“However, given the limited budget each financial year to cover the significant maintenance backlog for the City of Johannesburg’s extensive road network, we expect the condition of the City’s road network to continue worsening,” Mahanuke said.
The City of Ekurhuleni, an aspiring logistics hub, also suggested that there is simply not enough in the municipality’s budget to keep its roads up to scratch.
City of Ekurhuleni’s spokesperson Zweli Dlamini said five years ago, the municipality’s roads were steadily improving. That was until the Covid-19 pandemic hit, and the condition of the roads suddenly declined amid immense budget cuts for road maintenance and repairs.
In the current financial year, the municipality has allocated R291-million to road maintenance and repairs. In the financial year prior to the pandemic, the budget was more than double that (R621-million).
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