COLLEGE OF BUSINESS AND

ECONOMICS (CBE)
JOHANNESBURG BUSINESS SCHOOL
DEPARTMENT OF TRANSPORT AND SUPPLY CHAIN MANAGEMENT

ASSIGNMENT TOPIC:

Future of rail transport

INITIALS/ SURNAME/ STUDENT NUMBER;

A.P Maluleke 216042817

CONTACT DETAILS:
0795238889/ percysmog@gmail.com

DUE DATE:
18 - March – 2021

MODULE:
Rail transport management

Table of Contents
...............................................................................................................................................................1
Introduction...........................................................................................................................................2
Blue train: Luxury..................................................................................................................................3
Japan’s Maglev Train: Speed, Reliability................................................................................................3
Automated Australian Iron ore train: massive capacity, increase choice and Cost effective (on weight
basis).....................................................................................................................................................4
SA carbon tax: environmentally friendly and sustainable......................................................................5
Table 1: Cost of externalities.........................................................................................................5
Transnet: commodity safety..................................................................................................................6
Conclusion.............................................................................................................................................6
References.............................................................................................................................................6
 Introduction
Rail transport is central to social and economic development of many country.
Despite the enormous rail infrastructure investment attempts by firms and states,
currently other modes of freight and passengers transport appears to be
outperforming the railway sector because of rail challenges such arson and crime,
inflexibility of routes and timings, negative attitude by society, limited rail transport
services and poor infrastructure. Although rail industry face numerous challenges,
the are several sets of technical, operational, and commercial characteristics that
can be offered through examples to justify the global competitive future of rail
transport. The study identifies concrete examples to defend the future of rail.

Blue train: Luxury

Luxury transportation services are defined by the technology, services and amenities
install in the vehicles such as television, WI-FI and entertainment. The future
forecast for transport services indicates the demand for premium luxury
transportation will rise in the future. Road transport has been able to meet the luxury
transport through the classic limousine which represented class, height of style and
sophistication. First and business class provided by air transport provide passengers
with comfortable, large space, private facilities, and enjoyable flight experience.
Thus, for modal transport to compete in the future it should provide some form of
luxury passenger experience. Hence, the Blue train is a concrete example of future
rail transport.
The Blue train can simply be described as  moving a five-star “hotel-on-
wheels”[ CITATION Pau18 \l 7177 ]. The Blue train journey takes about 27 hours back
and forth from Pretoria to Cape town with some hours stop at historical sites such an
open-mine museum in Kimberly[ CITATION Tra20 \l 7177 ]. Based on [ CITATION Pau18 \l
7177 ], carriages are embedded with air-conditions and flare to counter the cold and
heat of the Karoo while accommodating 74 guests in 37 suites (first train) and 58
guests in 29 suites (second train). The length of the Blue train (336 metres – 17&16
carriages respectively) allow for more ultimate luxury recreational transport
experience compare to other modes. The two Blue train sets come with TV, Cuban
cigars, gift shop, butlers, en-suite bathroom, WI-Fi, laundry service and observation
and conference section towards the end of the train [ CITATION Pau18 \l 7177 ].
Furthermore, the bar and kitchen are very close to perfection as they contain
freezers and are stainless-stell design to keep wine and Italian champagne at
optimum temperatures[ CITATION Pau18 \l 7177 ] . The features enable for weddings,
birthdays, business trips, graduations, and engagements to be chartered within the
train. The Blue train undoubtedly reflect a concrete example to justify the future of
rail transport through its abilities to exceed passenger requirements.

Japan’s Maglev Train: Speed, Reliability

The perception of transport speed as adding more expenses to the firm is changing
towards that of transport speed as a major driver of competitive advantage [ CITATION
Fré16 \l 7177 ]. To compete in future markets, firms are putting more emphasis on
today’s speedy delivery and services to satisfy customers and improve warehouse
inventory management. Drones, UberEats, high speed airplanes and faster trucks
are used reduce the transit time to meet consumers who what instant gratification
driven by technology and the internet. Rail industry are aware of the importance of
speed in the future modal choice by firm, hence the development of Japan’s Maglev
Train. It is the fastest commercially operated train which clocked a speed of 581
kilometres per hour[CITATION Jra19 \l 7177 ].Electrically charged magnets are used by
Maglev train to propel passengers who are coping with fast-paced life. By the year
2027 the Central Japan Railway (JR Central) aim to introduce the Maglev train
service between Nagoya and Tokyo which will see a journey of 280km covered in
only forty minutes[ CITATION Jra19 \l 7177 ]. Such a speed is a motivating factor for
passenger to shift from other modes to railways.
Reliability is important as speed in countries such as Japan where population keeps
on increasing. Passengers will not be satisfied by speed if they complete the journey
standing and crowded. To counter for reliability, the Japan’s Maglev train can
accommodate one thousand passengers through big and comfortable sixteen
carriages[ CITATION Jra19 \l 7177 ] . It is projected that government will use high-speed
rail such the Japan’s Maglev train to free passengers and freight from the
stranglehold of airport and highway congestion. The initiative makes sense
considering rail is more fuel efficient than other modal choices. The fuel efficiency of
rail will be reflected through cheaper passenger and freight fares. The train with no
wheels and only track adds more operating reliability as this allow for Maglev trains
to operate during bad weather and make derailments unlikely to occur.

Automated Australian Iron ore train: massive capacity, increase

choice and Cost effective (on weight basis)
Based on the current demand growth rate, ITP transport concluded that the global
freight demand will triple in the next 45 years due to new technologies and e-
commerce, economic growth, new trade policies and infrastructural
development[ CITATION Gra16 \l 7177 ]. This means freight firms will be required to
move large quantity volumes regularly. This may impact modal choice for freight
firms. A good strategy requires increased transport capacity to accommodate future
freight transport demand. Rail transport is well established and can outperform other
modes in this area. Take for instance, the Australian Iron ore train loaded with 682
iron ore wagons using three locomotives and 7.353 km long [ CITATION Mar19 \l 7177 ].

The train entirely operate on automated network, removing driver changes which
reduce the transit time. The loading and offloading of products unto and off the train
is also fully automated and thus reducing incidents of freight damages, reduce
bottlenecks and boost firm productivity. The incredible achievement of full autohaul
operation will enable rail industry to meet future capacity and accommodate future
freight transport demand. One fully utilised automated train with 682 wagons can
replace number of trucks and thus reduce congestion on the highway. Regarding
wagons, the Australian automated train allow for the use of different wagons which
can carry different cargo types. Goods classified from dangerous to time sensitive
can be easily transported through different types of rail cars varying from refrigerated
wagons, livestock, tank to flat rail cars. This could imply that more firms in the future
will shun away from other modes to rail which can carry a wider variety of cargo.
Furthermore, considering the financial aspect of transportation, when goods are
carried for longer distances, transport costs of rail are relatively lower than road as
large volumes can be carried by a rail. Goods such as sugar, motors, fertilizers and
coals over long distances are best suited for rail mode.

SA carbon tax: environmentally friendly and sustainable

The year 2019 saw the South African president sign the carbon tax act [ CITATION
Rep15 \l 7177 ]. Firms and operators are obliged to pay an amount R120 per ton (first
phase) for emitting carbon dioxide which pollute the atmosphere [ CITATION Rep15 \l
7177 ]. The implementation of the carbon tax has more impact on frequent offenders,
namely industries which depend on electricity generation and fuel consumption for
operation. The transport industries rely on fuel to propel vehicles.
The rail industry is perhaps one of the greenest forms of transport with 80% less
emission of greenhouse effect in comparison to road transportation which account
for 70% of land freight in the South Africa [ CITATION Fré16 \l 7177 ]. A regular railway
network line can move 49 000 passengers per hour while a highway can carry round
about 24 000 people per hour. Walking and cycling are the only travelling methods
which are less harmful than railways. Future utilisation of rail by firms will significantly
reduce the amounts of harmful emissions. The South African carbon tax together will
congestion charging, and toll roads will push more businesses in the future aiming to
cut operating expenses to shift from other modes to rail. The initiative also rewards
companies with good green supply chain practices. Continual promotion of
environmentally friendly methods set the rail industry apart from other modes of
transport and attract new firms and customers who seek to do to business with
environmentally friendly organisation to lessen the impact of harmful emission
through operating on an entirely green supply chain network.
The externalities such as noise and air pollution are lower when using rail.
Organisations can capitalise modern diesel-electric locomotives in the future with lo
exhaust emissions. Trains burn less fuel per ton-mile compared to road transport.
These a company using rail produces less carbon print. Also, rail generate lesser
noise pollution. Noise disturbs sleep patterns of citizens and affect their
psychological state. Such situations are diminished by rail due to lack of congestion
and few trains running. This is a great indicator that citizens, especially in the urban
areas, will prefer the movement of rail. Table 1 shows the costs incurred by Transnet
for the year 2013, these costs, arise because of operations or economic activity
which occurs outside of the financial boundary of the organisation. The table indicate
good operation by rail industry.

Table 1: Cost of externalities[ CITATION Rep15 \l 7177 ]

 SA road (c/t.km) SA rail (c/t.km)
Accidents 4.9 0.4
Congestion 1.9 0
Emissions 4.6 0.8
Landway 1.0 0.1
Noise 1.9 0.02
Policing 0.3 0
Transnet: commodity safety

Carrying freight using rail transport is the safest compared to other modes since the
probabilities of accidents and breakdowns are quiet low. Insomuch as road transport
most of the freight in the country, due to road crashes, 135 000 people died over the
past decade[ CITATION AIN18 \l 7177 ]. Despite the numerous road policies and
campaigns companies are not only losing customers on the road but also
experienced employees. Road accident can lead to damage of valuable shipments
and loss of information. With rail, accidents are alleviated through its designated
lane. Moreover, trains provide a shield for freights being carried. rains, lighting,
exposure to the sun and snow are some of the weather conditions which can
damage freight. Trains are designed to protect products from such weathers. For
instance, most fruits and vegetables often get ruined when exposed to the sun, trains
are fully enclosed to block the sun. Nowadays, some trains have built in fridges to
hinder sensitive goods from deterioration.
Transnet being the dominant rail company in South Africa transport several
dangerous goods, and the company has taken measures to ensure dangerous
goods are transported safely by rail. The firm use the smarter assembly strategy
enabling a much safer transportation of dangerous goods through wagons containing
flammable substances not being placed next to wagons with flammable gas [ CITATION
Tra20 \l 7177 ]. The driver also has signal on the cab which when it is red it alerts the
driver that the train should be stopped and thus preventing the vehicle from passing
a certain point. If it happens the driver does not stop the train, the train will be
brought to a halt by the automatic stop-detection mechanism. Another Transnet
additional safety measure when signalling fails is the dead man switch, which the
train driver has to press every minute when driving the train, If the driver does not
press the switch, the train system will register that there is no driver and the train will
stop. These measures incorporated with GS tracking, ensure that Transnet
customer’s goods are protected from damage, theft, and losses while in transit.
Transnet freight rail (TFR) offering a very cost-efficient and safest shipping leads to
customer loyalty and satisfaction. Thus, customers will do business with Transnet in
the future.

Conclusion
According to the compelling examples provided above, it is evident that rail will play
a great role in future transport as it is a sustainable and economic transport solution.
This is due to rail providing freight and passenger customers with luxury, efficient,
safe, eco-friendly, and scalable. However, for the rail industry to have a more
dominant futuristic transport, a combination rather than a single factor is highly
desirable.

References

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africas-road-death-toll-a-national-crisis/
Ash, P. (2018, May 29). Does the Blue Train live up to its luxurious reputation?
Johannesburg, Gauteng, South Africa.
Frémont, A. (2016). The transfer of freight from road to rail transport. Sustainable
railway futures: Issues and challenges, 109–125,.
Granger, R. &. (2016). Towards a better European transport system. Transportation
Research Procedia , 4080–4084.
Jrailpass. (2019). The Japanese Maglev: World’s fastest bullet train. JTSCM, 23-37.
MAQUTU, A. (2016, April 7). Road is still king of freight. Retrieved from
http://www.transglobal.co.za:
http://www.transglobal.co.za/index.php/news/165-road-is-still-king-of-freight
Mary, J. &. (2019). A review of the transportation mode choice and carrier selection
literature. The International Journal of Logistics Management, 183–211.
Republic of South Africa. (2015). Freight shift from road to rail. Pretoria: Department
of Environmental Affairs.
Transnet freight rail. (2020, March 18). Prospectus. Retrieved from transnet.net:
http://www.transnet.net/Career/MSOE%20Prospectus/2019-20.pdf