Radebe calls for private sector involvement in rail

A CLEAR role must be
established for private sector
investment in the rail sector.
It’s one of the continent’s
biggest challenges and the
most durable solution to
its rail transport problems,
Transport Minister Jeff
Radebe told delegates at
last week’s Union of African
Railways conference in
Vanderbijlpark.
“But they should not be
allowed to cherry-pick the
best assets and operations.
“We need to develop
clear roles that will share
risk within the public and
private sector, with the
private sector participating
in capitalisation programmes,
operational enhancements as
well as service provision.
“We should not be fixated
purely on concessioning.”
Transnet Freight Rail
CEO Siyabonga Gama was
in full agreement. “But we
don’t believe we have yet
found the necessary appeal
to attract private sector
investment in infrastructure,”
he told FTW.
Radebe called on the
industry to step up the
pace of efficiency and
performance.
“A sound railway system
is important for economic
growth and integration
of the continent and the
challenge is how to adjust
the rail infrastructure system
to respond to and integrate
with emerging transport
systems in the world.
“Africa needs to take
stock of its achievements
and adapt itself to the
changing world or risk
marginalisation.”
Among the most pressing
challenges, in his view,
is mobilising adequate
resources, ensuring long-term
sustainability and promoting
inter-country cooperation.
“The key words are
investment, partnership and
improved performance.”