Private sector looks for financial feasibility
Railway lines connecting
to the Port of Durban
are the primary area of
interest for those who
may become involved
in Transnet’s proposal
to form public/private
partnerships for a
selection of its branch
lines, according to
Wiseman Zazi Madinane,
MD of the rail division of
C Steinweg Bridge.
“There are just not the
volumes at Port Elizabeth
or Coega, although there
are a couple of pockets
in Cape Town
which could
be leased out
to private
operators,” he told FTW.
“Inland terminals could
also be of interest, as
certain of these have
potential, but are not
being run efficiently (nor
profitably) at present.”
But, he added, to
meet the volumes that
would make such lines
financially feasible areas
of development for the
private sector, Transnet
would need to be able to
guarantee five to six trains
daily to service them.
And he agreed with
comments made to
FTW by Mervyn
Padayachee,
logistics director
of MSC
Logistics, where
he suggested that a lot
depended on which lines
Transnet identified as
being put up for tender.
Said Madinane: “It will
depend on which assets
Transnet is prepared
to spin off. If it was the
agriport or automotive
terminals in Durban,
then people might put in
an investment for a more
efficient asset.”
But he pointed out
that, while the budget
speech said that some
assets would be effectively
privatised, it didn’t call
it that. “Rather,” he
said, “it talked about a
‘minority interest’ – which
would imply that the
private company would
merely pay a lease to
operate the asset.” Not,
Madinane suggested,
what was required to raise
enthusiasm in the private
sector.
“Until we see a blueprint
of what Transnet has
in mind, it’s still purely
speculative.”
INSERT & CAPTION
Until we see a
blueprint of what
Transnet has in
mind, it’s still purely
speculative.
– Wiseman Madinane
