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Hinting at private rail services

18 Feb 2020 - by Ed Richardson
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For those companies wanting to provide private rail services, there is a glimmer of hope.President Cyril Ramaphosa said the Infrastructure Fund implementation team had finalised the list of shovel-ready projects and had begun work to expand private investment into public infrastructure sectors with revenue streams.“These include rail freight branch lines.”Privatised branch lines will only be viable and attractive if Transnet Freight Rail (TFR) is forced to integrate them into its mainline system, as was the case with the R117-million Kei Rail project in which the Eastern Cape government attempted to resurrect a defunct link between East London and Mthatha. Ramaphosa’s only reference to roads in the context of transport was that the government was going to pilot an “alternative rural roads programme” that could reduce the logistics challenges for farmers.An increase in renewable energy-connected freight may be sparked by his announcement that companies and power providers will be allowed to install large-scale solar installations.In addition, “we will open bid window 5 of the renewable energy IPP and work with producers to accelerate the completion of window 4 projects”.Of interest to some private power producers will be that municipalities will be able to purchase electricity from them.The caveat is that the municipality has to be “in good financial standing”.

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