a) INTRODUCTORY BACKGROUND
For a long time, the various Governments of SADC had been subsidising railways, which was been justified on the premise that railways were an essential ingredient necessary for the stimulation of the economy. This era was characterised by statutory requirements for certain commodities to be conveyed solely by rail transport, compulsory provision of loss making services (certain branch lines and passenger services) and refusal to issue permits for most bulky commodities to road transporters.
However, as of the mid-eighties, most SADC countries deregulated transport services and permits have been issued to road transport for almost any commodities. This development has exposed the railway industry to unprecedented competition from road transport with very little if any, barriers to entry. Whilst the railway enterprises have had to provide their own infrastructure (track, signals, and electrification), the state has continued to bear the burden for the construction and maintenance of road infrastructure. Owing to lack of a total cost recovery regime for infrastructure damage caused by road vehicles, the railways have felt the pinch of unfair competition occasioned by this imbalance.
b) PROGRESS TOWARDS COST RECOVERY AND THE “USER PAYS PRINCIPLE”
Following protracted lobbying and representations by SADC railway administrations, the ratified SADC Protocol on Transport, Communications and Meteorology provided for total cost recovery for each mode of transport and a ban on practices that tend to make one mode of transport subsidising the other. This recognition by the regional body as well as all the SADC member states themselves is a significant milestone in the region’s efforts to foster fair surface transport competition. If implemented to the book, the SADC Transport Protocol constitutes an opportunity for equitable fair transport competition to obtain within SADC. The railways that have hitherto been crying foul will have no excuse whatsoever for failing to compete meaningfully with road transport.
c) PACE OF SADC TRANSPORT PROTOCOL IMPLEMENTATION
Whilst the region has recognised the urgent need to address the problem of unfair competition, implementation of this multilateral covenant has not seriously taken off in the region due to lack of resources. As a result the playing field remains as tilted as ever before.
d) OTHER ASPECTS OF CONCERN
Fuel Levies
Most railways continue to contribute towards fuel levies for road maintenance through locomotive diesel, and yet locomotives are off road vehicles amounting to rail operators subsidising their competition, that is, road transport.
However, Spoornet , Zambia Railways and Central East African Railway are set to get a reprieve on fuel levies allocated to road financing.
Axle Load Limits and Gross Combination Masses
The following is a table depicting the legislated GCM’s in SADC and elsewhere:
The table confirms that the SADC member states have some of the highest GCM limits in the world, notwithstanding the fact that African countries are among those with most limited resources to undertake sustained maintenance of road infrastructure.
The options available to SADC member states include downward revision of these limits or hiking road user charges to levels enabling a total cost recovery regime. Unless these measures are adopted, the fiscus, which is already overstretched shall continue to subsidising road transport.
Provision of Unprofitable Services
The railways in SADC as state owned enterprises, are obliged to provide certain services like making mainline and commuter passenger services and running low capacity lines in the interest of the public and the national economy. In most cases, these railways are not compensated for these services, which impacts negatively on rail profitability. The Southern African Railways Association position is that these services must be costed and accounted for separately, with the state meeting the costs of prejudice the railways suffer by providing such services.
e) THE WAY FORWARD
The mere recognition by SADC and its member states of the need to introduce sustainable, equitable and fair surface transport competition is a step in the right direction. If successfully implemented, it will constitute a win-win situation for the governments as custodians of road and rail, as well as key players in road and rail transport.
The SADC Governments, through SATCC, need to be continually reminded and motivated to implement the provisions of the SADC Protocol Transport, Communication and Meteorology, which are aimed at addressing the foregoing.
There is no doubt that SADC has the skills and resolve to overcome these challenges. If the strategies are implemented in full, the region will go a long way in its quest for a harmonised and regularised the transport arena.
