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WESTERN
CAPE |
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ROAD/RAIL
COMPARISON
WHAT IT
COSTS
TO SEND
100 KG
from Cape Town to
central George |

Stephanie Platt's
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Given that the core of the Minister of Transport's
statement regarding creating a shift in the balance between
road and rail was focussed around price with no mention of
service, FleetWatch decided to conduct a quick survey among
some road freight companies to determine price and service
comparisons. The Railways was then approached with the same
request. Here are the results of Stephanie Platt's
investigation.
The survey was simple: Road freight companies were
approached by FleetWatch to move a parcel door to door from
central Cape Town to central George with a weight of 100kgs
and a value of R2 000.
Many of the road freight companies have additional charges
such as fuel levies and documentation and limit their
insurance cover. Undoubtedly, many of them would negotiate on
regular or bulk business. However, no one bothered to enquire
whether this was a single load or if it could become regular
or increase in volume. Companies quote a minimum charge for a
certain weight and an excess charge per kg thereafter. For the
purposes of this exercise, all additional expenses were added
into the final cost.
CROSSCAPE -
part of Crossroads Distribution.
Overnight.
They have no fuel levy and for R10 will cover a value of
R1000. Otherwise insurance is at 2.1% of value.
Total cost
R400.55 ex VAT
GOLOGIX
Has both a documentation fee and fuel surcharge.
Insurance is dependent on the commodity but is at 4-5% of
value.
Total cost R268.95 excluding VAT
FAST FORWARD -
was part of Transnet and now owned by XPS.
Will only guarantee delivery within two working days.
Insurance is at 0.4% of value.
Total cost R231.15 excluding
VAT
MARANATHA EXPRESS
Has a documentation fee and fuel
surcharge. Insurance is charged at 2,025% of value. Overnight
delivery.
Total cost R173.75 excluding VAT
BIGFOOT EXPRESS
Has a documentation fee and insurance at
2% of value. Overnight delivery.
Total cost R155.00 excluding
VAT
BOLAND VERVOER
Offers insurance of 1.2% of value and
overnight delivery.
Total cost R125.76 excluding VAT
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At today's rates, it would appear that when Barney Barnato
paid the equivalent of R55 for a two month delivery to
Kimberley, he didn't get a particularly good deal!
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And now for the Railways....
The bottom line is that at
this moment in time, it appears impossible to send 100kgs of
goods by rail from Cape Town to George. To discover this fact
was an exercise in perseverance, patience and eventually,
futility - starting with obtaining the first telephone number.
On looking up SA Railways in the latest Western Cape
telephone directory issued in June, it states "see
TRANSNET Ltd". There is no listing for Transnet Ltd in
the alphabetical listing.
A call to 1023 gives a number 449-3986, which is also
listed as the marketing office of Spoornet Marketing for
general freight. This number is constantly engaged - as is the
tariff quotation number of 449-5811. A client service freecall
number for the Operations Manager also goes unanswered.
A call to the Bellville Client Service centre is actually
answered and I am directed to the number for PX: 940-2715. On
dialling this number there is, wait for it, no reply.
Back to Bellville Client Service where, patience now at
breaking point, my call is transferred to someone called
Debbie. She tells me that there is no-one left at the 449
numbers. Everyone has moved to Bellville. She had no idea why
Telkom is giving out that number.
She tells me that to get a quote to move my 100kgs of goods
to George, I would have to phone Fast Forward, and gives me an
alternate sharecall number. Pressing for further information,
she informs me there is no rail delivery of small parcels to
George; all calls are diverted to Fast Forward now a division
of XPS. The XPS customer care centre informs me that the 100%
shareholder of XPS is the Post Office.
Editor's Comment:
It seems ironical that even when we want
to use rail, we are referred - by the railways themselves -
back to road!
One may argue that in his speech, the Minister referred to
creating "a price incentive for certain categories of
customers to switch from road to rail" and that he did
refer to "the areas of containerised and bulk cargo"
as being particularly suitable to rail. That would then wipe
out the 100kg parcel as a good example.
However, given the sorry saga of even trying to contact the
office of Spoornet Marketing for 'general freight', it is
obvious that the Railways will have to jack up its service
levels substantially before it will be able to attract
customers.
As stated at the end of the main article of this feature,
there is no doubt that rail has a place role to play. However,
it's place should be found in an unprotected, open and
competitive climate that operates to one ethic only - superb
service at a competitive price.
Based on the above exercise of frustration in trying to
simply contact them for information, we conclude that the only
way rail is going to attract customers away from road is via
some form of Government protectionism. And that will be taking
a huge step backwards. As it stands, rail loses hands down to
road. We rest our case?
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