Traxtion preparing to capitalise on ‘rare’ private-sector rail opportunity

3rd December 2021

By: Marleny Arnoldi

Deputy Editor Online

     

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Private rail freight operator Traxtion sees national government’s structural reform agenda as a rare opportunity for the private sector to leverage massive investment in trainsets to unlock one of the biggest structural impediments to growth in the South African economy, which is train capacity.

The company refers to the announcement that South Africa’s rail network will be opened up to third-party freight operators in 2022, as reiterated in the Medium Term Budget Policy Statement last month.

Traxtion is now assessing its options for raising capital to make use of this opportunity. The company intends to introduce a meaningful number of trainsets in the country once the structural reform takes place.

The company says the South African government is on the right track with its rail reform agenda, citing the example of when the Tanzania-Zambia Rail Authority (Tazara) allowed additional tons to be moved by Calabash Freight, which saw 1860 Tazara rail line’s freight volume grow by 26% year-on-year.

Traxtion already has a workshop complex in Pretoria that is capable of servicing more than 300 locomotives. The complex includes a parts inventory and supply chain division that supplies rail consumables throughout Africa.

The complex also houses a Rail School where the company trains semiskilled artisans from the local community to the highest technical qualification in Africa.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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