Professional body for inland ports Multimodal Inland Port Association (MIPA) has embraced State-owned freight company Transnet’s Network Statement, which it describes as a “landmark development” that allows third-party operators to access South Africa’s rail network at an “affordable” cost structure.

The statement provides a clear framework for private-sector participation in the rail sector outlining the terms and conditions for infrastructure access, such as access conditions, capacity allocation and pricing structures – a transition that is expected to transform freight logistics in the country.

Approved by Transport Minister Barbara Creecy in December, the Network Statement was developed through an inclusive consultation process involving Transnet, key stakeholders and the Interim Rail Economic Regulator and provides a comprehensive overview of the freight rail network, including key corridors, infrastructure and services.

At the time, Creecy described the Network Statement as a critical step towards achieving the government’s goal of moving 250-million tonnes of freight a year by rail, within the next five years.

Meanwhile, MIPA chairperson Warwick Lord describes the Network Statement as “massively positive” for the local freight industry.

“It provides the clarity and certainty needed for private investment in rail operations, which will help us achieve the government’s ambitious freight targets. This is a significant step forward in creating a more efficient, sustainable and competitive transport system.”

Further, MIPA member and rail products and services company RailRunner MD Mike Daniel asserts that various private-sector operators will also benefit, inferring that it will accelerate the deployment of road-to-rail innovations and facilitate new solutions and developmental activities along the South African rail network.

“RailRunner’s sustainable technology, which is 40% lighter than conventional wagons and requires fewer locomotives, is perfectly suited to operate under the new tariff regime. This will allow us to offer an efficient and sustainable transportation option, working in conjunction with road transport to optimise the movement of goods and reduce reliance on single-mode solutions,” he says.

MIPA members and various stakeholders are working with the Transnet Rail Infrastructure Manager to ensure the smooth integration of private operators into the network. This includes addressing challenges at ports and along key corridors, encouraging investment in strategic infrastructure and improving service levels to meet the needs of cargo owners and logistics service providers.

“The publication of the Network Statement is a significant step towards realising the vision of a modern, efficient and sustainable rail system in South Africa,” concludes Lord.