Thesis (MComm)--Stellenbosch University, 2013. / ENGLISH ABSTRACT: Global rail reform is an important topic, especially seen against a backdrop of a worldwide requirement to facilitate modal shift back to rail. This modal shift is required because of growing environmental issues and rising freight cost concerns. Appropriate rail reform is also required to create an environment for South Africa’s freight railway to sustainably achieve modal shift to reverse this trend. This research is based on an idealised design approach that postulates an ideal virtual railway for South Africa, based on Transport Economic and market segmentation principles. It is accepted that major investment will be required to realise this ideal railway, but the exact role, positioning, institutional and organisational structures of the railway system require clarification. The established approach to provide this clarification in a typical business is, first and foremost, to understand the market that needs to be served through appropriate market segmentation. In this regard, the research presents: • an overview of South Africa’s surface freight transport industry, including the specific challenges faced by the industry and the historical evolution of the industry; • a benchmarking exercise of South Africa’s rail system against global rail systems; • a summary of global rail reform case references; • the need for transport economic regulation; • an analysis of current total surface freight flows (road and rail) across the geography of the country’s transport corridors, culminating in a freight flow market segmentation for South Africa informed by rail’s economic fundamentals; • the resultant effect of this analysis on the framing of an idealised network design; and • a rail reform proposal based on the idealised design. The research ‘imagines’ that the country has no existing railway system and analyse the manner in which specific freight (commodities and cargo types) actually flows from origin to destination by all modes of transport within the country’s freight logistics industry. The result of the freight market segmentation exercise informs the crafting of an ideal network. Using this ideal network as a starting point, the most appropriate rail reform option is considered against the background of benchmarking the current system. / AFRIKAANSE OPSOMMING: Die wêreldwye beweging vir ‘n modale verskuiwing terug na spoor is ‘n belangrike faktor wanneer spoorhervorming ter sake kom. Dit word as gevolg van die toenemende klem wat op omgewingskwessies gelê word en stygende vervoerkostes, vereis. Toepaslike spoorhervorming is ook in Suid-Afrika belangrik sodat‘n omgewing waarin Suid – Afrika se vragvervoer volhoubaar modale verskuiwing kan bereik, geskep kan word om sodoende ‘n modale verskuiwing te bewerkstellig. Die navorsing in hierdie tesis word op ‘n geïdealiseerde ontwerp benadering gegrond wat die ideale spoorweg vir Suid – Afrika postuleer. Vervoerekonomiese en marksegmenteringsbeginsels vorm die grondslag van die ontwerp. Beduidende investering sal benodig word om hierdie ideale spoorweg te laat realiseer, maar die presiese rol, posisionering, en institusionele en organisatoriese strukture van die spoorwegsisteem is nog onduidelik. Die gevestigde navorsingsgefundeerde benadering om hierdie vraagstuk te benader is om eerstens markvraag deur middel van marksegmentering, te bepaal. In hierdie opsig bied die navorsing: • ‘n oorsig van Suid–Afrika se landvragvervoerbedryf, insluitend die spesifieke uitdagings en historiese evolusie van die bedryf; • ‘n nomrstellingsoefening van Suid–Afrika se spoorsisteem teen globale spoorsisteme; • ‘n opsomming van globale spoorhervorminggevallestudies; • die behoefte aan vervoerekonomiese regulering; • ‘n analise van die huidige landvragvloeivolumes (pad en spoor) regoor die land se vervoerkorridors wat in ‘n vragvloeimarksegmentering vir Suid–Afrika uitloop, • die gevolglike effek van die analise op die ontwerp van ‘n geïdealiseerde network; en • ‘n spoorhervormingvoorstel gegrond op die geïdealiseerde ontwerp. Hierdie navorsing gebruik ‘n virtuele benadering naamlik dat die land geen bestaande spoorwegsisteem het nie en analiseer die vraag na vervoer op die fynste moontlike vlak. Die resultaat van die vragsegmenteringoefening word gebruik om die ideale netwerk te bou. Deur die gebruik van die ideale netwerk as ‘n uitgangspunt word die mees geskikte spoorhervormingopsie oorweeg met normstelling van die huidige sisteem as ‘n vergelykende agtergrond.

Although the original intent of this study was to do a pre-and post-deregulation assessment of rail rates per ton-mile, the results using post-deregulation data show a significant decrease in rail rates between 1981 and 2000. While accounting for changes in shipment characteristics, savings for wheat, barley, com, oat, and soybean shippers were 63.80%, 69.17%, 49.07%, 67.97%, and 59.36%, respectively. Rate savings over time for an average 1981 shipment were 45%, 55%, 38%, 45%, and 36% for wheat, barley, com, oat, and soybean shippers, respectively. Analysis regarding the effects of deregulation of rail rates on com, soybean, and wheat on a regional basis shows that rail rates not only differ across commodities, but also among regions. In general, it was found that grain producers within regions that had higher levels of intermodal competition had lower rates than their counterparts with lower levels of intermodal competition. Distribution of benefits as a result of market-based pricing has varied among regions, and these variances are increasing over time.

Thesis: M.S., Massachusetts Institute of Technology, Department of Civil Engineering, 1978 / Bibliography: leaves 149-150. / M.S. / M.S. Massachusetts Institute of Technology, Department of Civil Engineering

A severe capital shortage in South Africa during the 1980s resulted in significant losses for both freight and passenger rail, which gave rise to cutbacks in new investments for rail. By 1986 expenditure on fixed rail assets was reduced from R1.44 billion to R500 million; this was the beginning of the decline of freight rail. During this period freight transport was deregulated and road freight used this opportunity to compete with rail transport in the same market segment by transporting bulk goods on long hauls. The result of this was an increase in truck traffic on the roads, causing a negative impact on the conditions of the road and placing freight rail in a continuous decline, leading to the obsolete state of the rail infrastructure, rolling stock and its under-utilisation. This had a detrimental impact on freight rail and the economy. Having realised the extent of the problem, government, through the Department of Transport (DoT), decided to intervene by changing the current model of the freight transport system. To that effect the DoT is in the process of developing a National Rail Policy, with the main focus being to encourage the shift of freight transportation of bulk commodities from road to rail. As the National Rail Agency, Transnet undertakes all South Africa‟s freight rail operations through its Transnet Freight Rail (TFR) division. As such, TFR is ultimately responsible for the implementation of the road to rail implementation project. To that effect, TFR developed the MDS to revitalise itself and ensure its success. The objective of this research is to (a) assess the capacity of TFR to successfully implement the road to rail policy; (b) determine whether the implementation of road to rail will lead to freight rail efficiency and competitiveness, reliability and sustainability; and (c) establish the industry‟s reaction towards the shift from road to rail. In order to respond to the research question, qualitative research was chosen as the most appropriate approach. This facilitated an in-depth exploration and understanding of the issues around the road to rail project including how the industry feels about the issue, as well as an exploration of other possible alternatives which could provide the same or better results in a simpler and more effective manner. This research may serve as additional information for authorities to consider during the implementation of the road to rail project, and could render a better chance of success. Upon completion of this research the author concluded that Transnet Freight Rail has a good chance of success. The implementation of road to rail is being given adequate attention. Integration is possible as the industry welcomes and supports the road to rail programme, in fact a number of collaboration agreements already exist between rail and other transport modes. This will enable Transnet Freight Rail to achieve efficiency, sustainability and a competitive advantage within the seven year timeframe of the MDS. / Graduate School of Business Leadership (SBL) / M. B. A. (Business Leadership)