Logistics multinational Grindrod Limited (Grindrod) has confirmed that it’s one of the companies which has succeeded with a third-party access application in Transnet’s rail network.
“This achievement marks a significant milestone in South Africa’s rail reform journey, creating opportunities for private sector participation to contribute positively to South Africa’s freight logistics system,” a company statement said.
“We are honoured for the recognition to play a role in South Africa’s rail reform,” Grindrod CEO Xolani Mbambo has said.
The open-access project is an integral part of the state-owned port and rail operator’s ambitions to shift 250 million tonnes of bulk freight onto rail.
Earlier this year, at the launch of a Logistics Accountability Score at Investec, Minister of Transport Barbara Creecy said Transnet Freight Rail (TFR) was handling at least 100m tonnes under that target.
She said although a financial year-to-date increase of 145m tonnes to 161m tonnes had been achieved, TFR should be achieving at least 180m tonnes given its current capacity.
At Friday’s open-access announcement (see August 25 post elsewhere), Creecy said private-sector involvement could yield an additional 20m tonnes by 2027.
Transnet CEO Michelle Phillips said although some successful applicants had indicated rail-sector readiness by 2027, the active involvement of most of the 11 applicants approved for the 41 different routes on six bulk corridors would only be possible by 2028/29.
