This is a discussion document that is certain to get some pushback, some of it angry, from Transnet customers and private operators.
No one promised the road to reform was going to be easy. But at least now the public discussions can begin.Transnet’s draft ‘Network Statement’, which is intended to ready the logistics provider for private investment, has received a lukewarm reception from the transport sector.
“Traxtion remains fully committed to and believes in the potential of rail to revitalise the upstream South African economy. To this effect, we will be formally commenting on the draft Network Statement once gazetted by the Interim Rail Economic Regulatory Capacity.”David Taylor of rail consulting firm Taylorail: “The Private Sector is poised to address part of the estimated R200 billion backlog in infrastructure spend, to bring our network back to the world-class level that it should be.
The Organisation for Economic Cooperation and Development identified this problem in its report, The Regulatory Asset Base Model and the Project Finance Model: A Comparative Analysis. “DB’s woes are the result of poor management, a bloated bureaucracy, political interference and years of underinvestment,” wrote The Economist in 2023.The Transnet network statement offers a comprehensive overview of the SA rail network and its challenges. What jumps out is the scale of theft and vandalism that has hobbled rail services.
A total of 1 162 security incidents – about three a day – were reported on the North Corridor last year. “Incidents in the Central Corridor include OHTE and signal cable theft, robberies, vandalism and theft of Perway components such as fastenings and wooden sleepers,” reads the document.
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