Johannesburg - Freight and logistics group Transnet said on Thursday it has a carefully considered strategy to boost its export capacity of iron ore significantly over the next five years.

Acting CEO Chris Wells told a media briefing that Transnet would invest to increase its railway capacity for iron ore export lines by 10% in the next three years, and to maintain annual volume growth of 3% above gross domestic product for five years.

Iron ore export capacity would grow from its current 47 million tonnes to about 60 million tonnes by 2012. "Every part of our volume growth strategy has been planned," said Wells.

He said the target numbers were not just a "wing and a prayer", but had been thoroughly planned and studied as part of the group's R93bn capital investment over the period. "We'll grow general freight volumes by 7% per year for the next five years to 2015," said Wells.

Transnet had a "strong drive" to achieve an appropriate container freight market share for its rail business. "Currently our market share stands at over 35%, with the rest going to the heavy trucks on our roads," said Wells.

To win more market share away from the trucks, said Wells, Transnet aimed to reduce its wagon turnaround by 21%. Wagon turnaround is the length of time a wagon takes to return to its loading point after delivering a client's cargo. "If we achieve that, we'll effectively be adding 21% more capacity," said Wells.

He said Transnet had taken a bold decision backed and approved by the board to improve its rail service to world class standards, adding that the five-year plan would facilitate economic growth through improved rail infrastructure.

The group would increase its general freight volume capacity, particularly for iron ore and coal, without linking rolling stock to speculative commodity prices. "We'll only provide the freight capacity to the customer," said Wells.

- Fin24