And fom 2 days ago
Mmegi reported that State railway companies in South Africa and Botswana have sealed an agreement that will establish a trade corridor for the export of coal from the Central Kgatleng and other districts to the port in Durban. The deal comes shortly after South Africa state owned logistics company Transnet Freight Rail finalised a similar arrangement with the railway companies in DRC, Zambia and Zimbabwe to increase copper exports through Durban.
Transnet's deal with the DRC, Zambia and Zimbabwe envisions a unified cross border railway system that will stamp out inefficiencies obstructing cargo flows between the countries. The system which will have a joint operating centre based in Bulawayo is due to develop co ordinated traffic plans for the 5 operators.Recently Transnet Freight Rail's executive manager for international business Ms Nyameka Madikizela said that the arrangement with Botswana Railways would be exactly the same as the DRC, Zambia and Zimbabwe deal.
She revealed that the joint operating centre for the Botswana Durban corridor would be in Mahalapye. She said that "We have agreed on the terms and what we need to do now is to look at setting up the processes to be able to take this forward. At the moment we have reached agreement on a joint operating centre and while it's a different corridor from the 1 with the other countries the idea is exactly the same. We are doing a lot of business with Botswana Railways and this is a long standing relationship where we have supported each other in various projects." Ms Madikizela explained that unlike the South Africa, DRC, Zambia and Zimbabwe deal Transnet's arrangement with Botswana would not be restricted to a single route. She said that "It's not so much about the route because Botswana is central in the region and there are various export routes.”
There are different corridors that can be used and the exports will be through Durban. Transnet and Botswana Railways officials are expected to sign the official agreement later this year enabling the commencement of the deal.Meanwhile Trade and Industry Minister Ms Dorcas Makgato Malesu said that discussions continue with Namibia, Zimbabwe, Zambia and Mozambique towards the diversification of Botswana's trade routes away from a dependence on Cape Town and Durban. Last week Ms Makgato Malesu said journalists that she had already held discussions with ministers from the 4 countries as part of government's drive to diversify the country's export and import routes.
She said that "The greatest challenge is that we are heavily dependent on the southern corridor being Cape Town and Durban. If anything happens to that corridor in terms of goods and services then we are in trouble.” The minister's comments coincided with President Mr Ian Khama's own pronouncements on the same initiative according to an interview conducted by BusinessDay. Mr Khama said that industrial actions in South Africa had exposed Botswana's over dependence on the southern corridor.
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