Letters to the editor

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Headlines
June  2001

WESTERN CAPE

ROAD/RAIL
COMPARISON

WHAT IT
COSTS 
TO SEND
100 KG
from Cape Town to 
central George


Stephanie Platt's

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

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!

 

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?