South Africa’s national railway and logistics group, Transnet, has taken a significant stride towards developing a more dynamic rail sector, according to the railway portal Railway Supply, citing Railway Gazette.

Advancing South Africa's Rail Network:

In accordance with the government’s National Rail Policy, Transnet has instituted a temporary rail infrastructure manager ahead of opening the network to third-party train operators in 2024.

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This move is part of a broader strategy involving vertical separation, aimed at attracting private sector investment, promoting increased railway usage, and ensuring the proper maintenance of the network.

The interim infrastructure manager, appointed on November 1, will collaborate with the Interim Rail Economic Regulatory Capacity, a temporary regulatory body, to formulate plans and oversee access until a permanent structure is in place.

Several stakeholders, including the Department of Public Enterprises, the Department of Transport, IRERC, and others, will participate in consultations on the draft railway network, draft access agreement, and proposed tariff methodology.

These documents will be published on April 1, 2024, coinciding with the opening of applications for railway paths.

The Transnet Rail Infrastructure Manager will assume responsibility for the railway network, while Transnet Freight Rail Operating Co will operate trains, entering into competition with other operators within South Africa and the broader region.

Third-party operators can request train paths, becoming available from May 2024 if not utilized by TFROC.

To ensure fair access and regulate pricing, compliance, and penalties, a Transport Economic Regulator will be established. This entity will also be responsible for resolving any disputes between the infrastructure manager and operators.

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The key commercial objectives of the infrastructure manager are to maximize network utilization, increase network density, and generate revenue from access fees.

These funds will be dedicated to financing network maintenance and expansion in accordance with government investment plans.

President Cyril Ramaphosa, speaking on October 30, emphasized the government’s commitment to overturning the legacy of corruption and mismanagement in state-owned enterprises.

While maintaining public ownership of port, rail, and electricity infrastructure, he highlighted the introduction of competition in operations as a means to enhance efficiency and reduce prices in the long term.

Advancing South Africa's Rail Network:

Ramaphosa expressed confidence that ongoing reforms would drive economic growth in South Africa, resulting in a stable electricity supply, a functional railway, and increased job opportunities for all citizens.

Transnet’s initiative stands as a pivotal moment in reshaping the country’s railway landscape, aligning with broader economic revitalization efforts.

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