The surge in trucking activity in South Africa, primarily driven by higher coal prices and train-related challenges, could potentially result in significant job losses within the road transport sector when these factors ease, warned the head of the state-owned port and rail company.

Transnet SOC Ltd., facing logistical hurdles such as locomotive shortages and vandalism, has led mining companies to opt for the more expensive route of transporting commodities by trucks to coastal areas, capitalizing on elevated prices. According to the Minerals Council South Africa, the number of trucks transporting mined goods across the country's roads has more than doubled to over 3,500 trucks per day compared to 2020.

The escalating volume of truck traffic, particularly hauling coal and other commodities, has prompted concerns about the future prospects for truck owners. As commodity prices potentially decline and rail operations improve, Portia Derby, Transnet's CEO, expressed worries about the fate of trucking operators and emphasized the need for early discussions and the establishment of a sustainable model that includes truckers in the long term.

The surge in trucking has resulted from a combination of factors, including operational challenges within Transnet, and the demand from the mining industry. This has notably impacted small-scale truckers who saw an opportunity and invested their pensions in trucks, leading to a proliferation of trucking businesses.

However, challenges related to long queues of trucks at borders, congested ports, and safety concerns for communities and drivers have emerged as a result of this surge in trucking activity. Moreover, the recent drop in export coal prices by more than 50% in the first half of the year compared to 2022 has added further uncertainty to the situation.

To address these issues, experts emphasize the need to shift freight transportation away from roads and back to rail, streamlining the process to ensure efficient movement of commodities. This is particularly important for coal, which saw reduced shipping due to rail-related challenges at the Richards Bay Coal Terminal.

Despite the challenges, Transnet is actively working to improve its performance and meet its commitments, especially concerning the transportation of coal. Derby expressed her hopes that the company's performance would not be worse than the previous year, aiming to meet their target of transporting 60 million tons of coal.