The proper and speedy implementation of third-party rail freight access in South Africa, as laid out in the National Rail Policy, is critical to prevent Transnet’s downward spiral. This private sector access to the rail network is the primary solution to a transport crisis that is hammering the economy.There is an urgent need for rail reforms; there is a huge backlog of maintenance on the rail network and a massive need for private-sector investment into the general freight network. The South African rail infrastructure is in a terrible condition, which is leading to major derailments. The only option to get this done is through private-sector investment. In addition, Transnet has underspent on the maintenance of the rail infrastructure by at least R27 billion over the last 10 years. Private-sector access to the rail freight network means that Transnet will earn money from access fees, a new and material income stream that will enable it to maintain the infrastructure.By bringing in private operators, diversifying risk away from just Transnet, government will also be able to concession loss-making sections of the core rail track network to the private sector to invest and resolve the backlog maintenance crisis without putting one rand’s more strain on the fiscus.
