Private rail operator Traxtion expects the first investment into private freight train capacity to be announced later this year and to be focused on the bulk freight sectors.
This is excellent for the national economy, says CEO James Holley.
The company welcomes the announcement in the Budget by Finance Minister Enoch Godongwana of the introduction of private sector participation in the use of South Africa’s rail network starting in May this year.
However, the broad scale successful implementation of rail reform will set the baseline for the revitalisation of the country’s rail network through the implementation of private sector infrastructure concessions, Holley emphasised.
This will be guided by the National Rail Policy, the Freight Logistics Roadmap and the Private Sector Participation Framework as adopted by Cabinet.
"Our national attention now should be on the condition of the track infrastructure. To unlock the investment into the new train capacity the broader economy a track infrastructure network that enables the efficient operation of trains is required."
Given the constrained position of Transnet’s balance sheet and the competing pressures for allocations from the national fiscus, the government’s policy documents, which call for the upliftment of the condition of the infrastructure through concessions to private operators, make perfect sense, Holley says.
"The effective roll-out of these concessions will determine the extent to which rail is the catalyst for economic growth in South Africa. Implemented correctly alongside power and port reform, South Africa will be well on the road to accelerated and inclusive growth," he adds.