Key private sector stakeholders in South Africa’s freight industry have welcomed transport minister Barbara Creecy’s initiative to extend the request for information (RFI) process for more progressive input into 3rd party slot-operation access for the country’s rail freight network.
This follows Creecy's announcement on Sunday of an RFI process to assess market interest in potential private-sector participation (PSP) investments in selected rail and port infrastructure and operations.
The information gathered before the submission deadline of May 9 will be instrumental in shaping the first PSP procurement phase, which is expected to commence before the end of August.
The corridors identified for the RFI include:
- A PSP initiative for the Northern Cape-to-Saldanha Bulk Minerals Corridor and the Northern Cape-to-Nelson Mandela Bay Corridor, both of which primarily facilitate the export of iron ore and manganese, respectively.
- The Richards Bay Bulk Minerals Corridor PSP, a crucial export route for coal and chrome from Limpopo and Mpumalanga, also used for magnetite exports.
- An intermodal supply-chain PSP project concentrating on the container and automotive industries, with considerations for designating South Africa’s container port system as a regional transhipment hub for major shipping lines.
The latest development in ongoing private-sector funding involvement of the country’s rail freight network comes after it emerged last week that there had been 98 applications for slots on Transnet’s rail network by third-party sector operators.
Dr Juanita Maree, CEO of the South African Association of Freight Forwarders, applauded Creecy for taking “a bold step” in deepening the involvement of potential 3rd party operators.
She said that what we had seen so far, through the “Network Statement” by the Transnet Rail Infrastructure Manager, involved access charges and agreements, PSP aspects that are still undergoing refinement.
“But what has since transpired is that the government acknowledges that excess charges must be palatable for all possible role-players in the slot application process.”
Maree said the Department of Transport’s (DoT) willingness to hear what industry had to say about extended input, especially where large corporate logistical concerns would be willing to assist with infrastructural upgrades to the network, was of major significance.
“It’s emboldening to hear the minister encouraging industry to participate in an RFI process that could pave the way for a request for proposals.
“Essentially, she wants to hear from her industry about what ought to be done to improve our logistics system so that the necessary changes can be implemented.”
Maree stressed that Creecy had played a major part in establishing trust between the DoT and private-sector concerns.
“The fact that she said she wants to re-establish the prominence of our ports as regional hubs by bringing back productivity and volumes shows Minister Creecy is serious about restoring the logistical ability of our country.”
Evert de Ruiter, managing director for Auctoro Advisory which specialises in logistics strategy and transportation reform, said South Africa’s (logistics) “iceberg is melting”.
“The logistics future for our country cannot look like the past. And what got us here won’t get us where we need to go.
“Everyone with a vested interest in logistics in SA now has an opportunity to be heard. Don’t waste this chance.”
