In a groundbreaking move for South Africa's transport sector, private sector participation in the country’s rail network is now a reality, thanks to Transnet’s publication of the final Rail Network Statement on Friday, Cape {town} Etc reports.
In a groundbreaking move for South Africa’s transport sector, private sector participation in the country’s rail network is now a reality, thanks toThis pivotal development opens the door for private operators to begin utilising Transnet’s extensive rail infrastructure, offering much-needed relief for South Africa’s export challenges caused by deteriorating rail performance.
The new tariff structure features two parts: a fixed cost based on train kilometres, and a variable cost linked to the gross tonnes per kilometre. For example, the Iron Ore Corridor will have a charge of 3.42 cents per tonne, along with a fixed cost of R650 per train per kilometre. Meanwhile, the Coal Corridor will see fees of 5.84 cents per tonne and a fixed R250 per train per kilometre. These tariffs, which apply to the current financial year, are set to be updated by the end of March 2025.
Applications for private rail operations are open until 7nFebruary, 2025, with evaluation scheduled to begin shortly thereafter. The first private operator trains could be operational by 3 April, 2025, according to Juwith Magabe, Transnet Rail’s acting general manager of commercial operations.
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