As South Africa implements the national rail reform programme, the private sector will play a key role in investing in rail and port operations, while ensuring that the infrastructure remains State-owned.
“The current state of Transnet’s rail infrastructure is cause for concern for freight operators and cargo owners alike. The state has limited availability of resources for major refurbishment. This makes private sector investment critical,” Minister of Transport Barbara Creecy said on Tuesday in Johannesburg.
Earlier this year, the Minister launched an online Request for Information (RFI) to enable an environment for private sector participation and enhanced investment in rail and port infrastructure and operations.
The RFI received an overwhelming interest with 162 formal responses from the private sector.
“To sustain our economy, we cannot afford to wait until the Private Sector Participations (PSP), reach financial close before launching a programme to rehabilitate Transnet’s rail network.
“Immediate sources of finance for this work include Transnet’s current infrastructure budgets, two applications to National Treasury’s Budget facility for infrastructure and a joint funding and collaboration framework which could allow current customers to assist in repairing the network without adding to Transnet’s debt,” the Minister explained.Creecy was addressing the Southern African Railway Association (SARA) Rail Conference and Exhibition, which plays a pivotal role in advancing and modernising railways, not only within Southern Africa but across the continent.
“Later this year, Transnet will issue Requests for Proposals and begin the formal procurement process, which will bring substantial private sector investment into the rail infrastructure probably through a concessioning model. It is important to emphasise once again that this process will take place in the context of the network as a whole remaining in state ownership,” Creecy said.
Rail reform journey
Last week, the Minister announced that eleven private sector operators met the initial application criteria and have been allocated amongst them a total of 41 routes across six corridors, for operating periods of up to ten years.
The Transnet Rail Infrastructure Manager (TRIM) estimates that the new Train Operating Companies (TOCs) will carry an additional 20 million tonnes of freight per annum from the 2026/27 financial year.
“This will supplement Transnet Freight Rail’s (TFR’s) forecasted volumes and contribute to government’s target of increasing freight moved by rail to 250 million tons per annum by 2029.
“This is a significant step in our rail reform journey and makes open access to freight rail a reality in our country. It will contribute to a more efficient, reliable and sustainable rail system that can promote inclusive growth and ensure job retention and job creation.
“In South Africa, reforms such as the separation of infrastructure and operations at Transnet, the strengthening of the Railway Safety Regulator, and the expansion of passenger rail through the Passenger Rail Agency of South Africa’s (PRASA) revitalised services are setting important examples for the continent,” Creecy said.
National Rail Master Plan
Government is currently finalising the National Rail Master Plan (NRMP), which will be a comprehensive, evidence-based framework to guide the transformation of South Africa’s rail sector over the next 30 years.
“When implemented, our Master Plan would complement the Southern African Development Community (SADC) Regional Rail Master Plan. Going forward we can use both plans to work together as a region,” she said.
The vision for the SADC Regional Transport Master Plan is focussed on providing transport infrastructure, services, policy and legislature, enabling environmental and supportive institutions with the necessary human resource and institutional capacity to transform the transport sector.
Appetite for investment
In the passenger rail space, PRASA is restoring routes, introducing modern train sets, and improving safety — proving that passenger rail can be an affordable, reliable, and dignified transport option for millions.
“Thus far PRASA has successfully revived 35 out of 40 corridors and sections of service lines, and the agency achieved an unaudited figure of 77 million passenger journeys for the last financial year.
“In September we will launch the Request for Information (RFI) for passenger rail, which will initiate the process of determining the appetite for investment in commuter rail.
“By recovering our passenger rail capacity, we aim to reach the milestone of 600 million annual passenger journeys on the PRASA network, within five years,” the Minister said.
With the expansion of the rail sector, the Minister emphasised the importance of ensuring the railways are green, climate-resilient, and sustainable.
“Electrification, hybrid locomotives, and circular economy practices will help us meet our climate goals. At the same time, we must invest in our people — training engineers and logistics practitioners, technicians, managers, and innovators who will design and operate the railways of the future. This is about building African skills for African rail solutions,” the Minister said.
Originally posted on SAnews.gov.za
