The contract was officially signed on 14 December in Durban by Dr Johan van Zyl, president and CEO of TSAM, and Siyabonga Gama, chief executive of TFR.
This contract is in line with TFR Container and Automotive Business Unit's (CAB) strategy to offer an end-to-end supply chain solution to cargo owners. In doing this CAB has increased its value proposition to customers in this arena, which also includes several value additions such as vehicle loading and yard management.
With this new contract CAB will now have a direct relationship with a strategic and leading original equipment manufacturer (OEM), Toyota SA Motors and a direct influence in the logistic chain. This will inevitably increase the rail market share, volumes and revenue.
Toyota will in turn benefit from the significant bulk carrying capacity offered by TFR. This will translate into long term savings on vehicle movement and general logistics overhead costs and will help reduce the congestion on South African roads. This is further in support of concerns raised by the state on the road traffic congestion with associated road accidents.
The contract execution will be in three phases, namely transportation of domestic cars from Isipingo to Kaalfontein in Johannesburg, transportation of import cars from Durban to Kaalfontein and transportation of import and export cars between Isipingo and Durban.
Phase one commenced as a pilot project on 17 October 2011 when the first cars were loaded onto the train at the Isipingo Terminal to Kaalfontein Terminal. This will be followed very soon by the phase two, while the third and the last phase will be implemented later as special flat and open wagons are currently being designed.
