Poor rail disrupts Botash operations
Chakalisa Dube | Monday July 8, 2024 06:00
Botash, the key producer of natural sodium and related products in the Southern African region, is one of the most flourishing local companies and last year the company’s annual revenue exceeded P450 million.
Phatshwane said that owing to the poor rail infrastructure in the region, the company has now been forced to transport its products and raw materials by road, something which comes at a huge cost.
“Botash’s trade is heavy freight. These are bulky materials that are used in the industry. “A business like this needs a railway system that works for it to perform at its peak. “Rail performance has not been good across the region in Botswana, Zimbabwe, and South Africa. “In South Africa, it is even more monumental because of its sphere and size,” Phatshwane said in a recent briefing.
Botash has previously said that communities in South Africa sometimes shut down rail tracks passing through their areas as a form of protest against the poor socio-economic challenges they face. The company said this negatively affects its operations.
“Just to give you some statistics. In 2014, 100 percent of Botash’s volume was via rail and by 2023 less than 30 percent was on rail. “This means that 70% was on the road because Botash has not closed. “There are consequences because trucks now crowd our roads which are damaged, causing accidents, are more expensive, generate more carbon and are not good for climate,” the MD said.
Phatshwane further stated that the supply of water in Botash’s area of operation is also very erratic, something that has negatively impacted the company’s operations.
“This is a problem (erratic water supply) that has been going on for some time. “What is unique about Sowa Town is that it is an area that is water stressed and under-invested in dams,” he said.
For some time, areas in the Sowa water cluster have been experiencing water scarcity. Water challenges have partly been attributed to poor infrastructure. The government has said that plans are underway to improve the water infrastructure in the area.
The production capacity for soda ash is 300,000 tonnes per annum but at the moment the mine delivers approximately 280,000 tonnes per year. Production capacity for salt is 650,000 tonnes per annum which includes three variants being chemical grade salt, food grade coarse salt and food grade fine salt.
However, the production of salt stands at approximately 420,000 tonnes per annum in line with market demand. Soda ash is mostly destined for South Africa while salt is for local consumption, as well as in Zimbabwe, Zambia, Malawi, and the Democratic Republic of Congo amongst others.