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Positive development for private rail in South Africa

Published

11 months ago

May 31, 2023

Transnet SOC Ltd., the state-owned logistics company in South Africa, is pushing ahead with plans to boost private participation in South Africa’s ports and freight-rail networks as the state-owned logistics company’s operational performance deteriorates. Aiming to increase private involvement, the company intends to create an infrastructure manager by the end of October, enabling private companies to operate trains on essential freight tracks and facilitating private rail in South Africa, as per MyBroadband.

This move comes as Transnet handles the transportation of cars, metals, coal, fuel, and automotive parts to ports and imports at the Durban Pier 2 Container Terminal, which is part of Africa’s biggest container port, as well as at the Ngqura Container Terminal.

As the government seeks to address the declining performance of state-owned enterprises and deliver essential services to citizens, encouraging private-sector investment in South Africa’s logistics and power industries has become a priority.

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In addition, the government supports Transnet in acquiring additional locomotives and working with law enforcement agencies to combat cable theft, which disrupts sections of the Container Corridor, linking the port at Durban with the industrial hub of Gauteng.

The government has also established a Water Partnerships Office in the state-owned Development Bank of Southern Africa to drive further private participation. In addition, it has over 10,000 megawatts of private power projects in development.

These reforms to improve private rail in South Africa aim to address immediate challenges and drive a fundamental transformation of the economy in the months and years to come, according to Khumbudzo Ntshavheni, South Africa’s minister in the presidency.

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