Network Statement a major step in rail reform – B4SA
Industry organisation Business for South Africa (B4SA) welcomes the release of the Network Statement as an exciting and significant milestone in the journey towards meaningful rail sector reform in South Africa.
“The Network Statement represents a pivotal step in unlocking the potential of South Africa’s rail network through third-party access, which is one of several ways identified to bring private sector participation into the system,” says B4SA Transport and Logistics senior executive Ian Bird.
Other options, such as concessions, allow private operators to manage sections of the network and may involve different cost structures for logistics users, he notes.
The Network Statement was published by the Transnet Infrastructure Rail Manager (TRIM) and will shortly be gazetted by Transport Minister Barbara Creecy.
In addition to tariff structures, the Network Statement addresses vital technical and operational considerations. The modelled tariff structure reflects a balance between stakeholder demands and Transnet’s initial proposals.
“There has clearly been a lot of work put into the final Network Statement, with tiered pricing that has been globally benchmarked.
“The outcome is a commercially responsible approach that is palatable for industry and supports the country’s road to rail strategy,” says Bird.
The tariff structure and pricing only apply to Transnet’s current financial year, which ends in March 2025, and work has already begun to develop the 2025/26 tariff framework and pricing.
Longer-term tariff pathways will be shaped by the competition inquiry into the sector and the creation of the Transport Economic Regulator (TER), he adds.
Further, B4SA also highlights the importance of leveraging private sector resources to enhance infrastructure without impacting Transnet’s balance sheet.
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