Transnet Freight Rail, the South African rail logistics giant has few admirers lately. It has disappointed nearly all who rely on it to haul goods from where they are produced to where they are needed. Infrastructure is critical for the flow of goods and services in an economy. Countries that have efficient infrastructure tend to find that goods and services flow relatively easily and, in a cost-efficient manner relative to their peers whose infrastructure is not in the same condition. Where infrastructure is not optimally developed there, tend to be bottlenecks and constrictions that hamper the flow of goods and services in an economy. This is so important because you can almost predict how well an economy can and will perform from the state of its infrastructure. Logistics are central to economic activity anywhere. This component of a country’s infrastructure needs to be in tip-top shape to support the businesses that rely on it. The case of Transnet Freight Rail (TFR) is a classic case study of the adverse impact of poor logistical infrastructure on a country’s economic activity. It also presents opportunities that providers of capital can play on to improve logistical infrastructure for the good of society. The
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