This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
|
|
2019 |
2020 (estimated) |
2021 (projected) |
2022 (projected) |
|
Total Market Size |
995,000 |
750,000 |
700,000 |
700,000 |
|
Total Local Production |
130,000 |
140,000 |
140,000 |
150,000 |
|
Total Exports |
54,000 |
55,000 |
55,000 |
58,000 |
|
Total Imports |
1,000,000 |
700,000 |
800.000 |
750,000 |
|
Imports from the U.S. |
420,000 |
320,000 |
280,000 |
230,000 |
|
Exchange Rate: 1 $ |
14.58 |
16.44 |
|
|
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Note: Above figures exclude the value of the independent Richards Bay coal terminal consortium upgrades and multi-year diesel and electric locomotives roll-out confirmed in 2010 and 2014. Figures also exclude related road, highway, and port/maritime investments. Figures are unofficial estimates obtained from press and industry sources.
South Africa has the best rail infrastructure in Africa. However, rail (freight and passenger) and port capacity shortages remain a severe constraint in domestic and regional trade, even in the currently constrained business environment. The South African Government has announced plans to spend R900 billion by 2027 on transportation infrastructure, although project implementation has been slow and may be reviewed to ensure good governance and sustainability. The authorities seem intent on addressing failings in the rail environment and have made progress in streamlining the freight and passenger network on the 3’6” Cape gauge with new tractive systems, carriages, hoppers, signaling and fare collection systems, but internal inefficiencies and administered rail tariffs have made competing against road freight difficult. Feasibility studies to expand the 4’8” gauge Gautrain high speed passenger rail project in Pretoria and Johannesburg across Gauteng Province have been completed but implementation may only start over the medium term.
Opportunities
The Tambo Springs greenfield multimodal rail, road, and air hub in Gauteng Province, valued at $15 billion. Is currently being held in abeyance, despite repeated announcements: www.tambosprings.co.za
State-owned Transnet Freight Rail (TFR) and others are reviewing logistic (mostly rail, but also ports) projects such as upgrading the Sishen-Saldanha Bay ore line, the Richard Bay coal line and other new coal line networks in the north-west. Transnet’s rail and port projects were set to cost around R300 billion over seven years and include augmenting the tractive and bulk car fleet, signaling, maintenance, advanced train management systems, increased line security and network expansion/concession models.
Sub-Sector Best Prospects
- Transportation equipment and infrastructure:
- Strategic Route Design and Network Planning
- Business Model Analysis and Project Management
- New and Refurbished Locomotives for African Railroad Operators
- New Bulk Car and Other Dedicated Rolling Fleets
- Smart Signaling and Operations Automation
- Security and Surveillance Systems
- Automatic Fare Collection Systems
- Rolling Stock Depot Design
Resources
Tambo-Springs Multi-Modal Logistics Hub
Exhibitions:
Africa Rail Conference and Exhibition
20-21 October 2021 | Virtual Event
21-22 June 2022 | In-Person Event
Sandton Convention Center, Johannesburg
For More Information, the U.S. Commercial Service in Johannesburg, South Africa can be contacted via e-mail at:
Phone: +27 11 290 3208; Fax: +27 11 884 0253, or visit our Website:
https://wwwtrade.gov/south-africa/