Transnet has reached a critical milestone in the country’s rail reform process by setting up the rules for the introduction of third-party access to the country’s rail network.
This follows the Transnet Interim Infrastructure Manager’s publication of its draft Network Statement on Friday, which will be gazetted for public comments by the Interim Rail Economic Regulatory Capacity over the next few days.
The draft Network Statement contains rules, time limits, timelines, procedures, services, charging principles, and terms and conditions governing the use of the railway infrastructure by train operating companies. It also contains information about Transnet’s operational corridors that make up the network and service level agreements that will be entered into between the infrastructure manager and operators.
Rail Reform, introduced in the White Paper on National Rail Policy has been given expression in the Economic Regulation of Transport Bill, and further outlined in the Freight Logistics Roadmap. It entails vertical separation of the infrastructure and train operating businesses of Transnet Freight Rail (TFR).
According to TFR, the policy’s vision is to position rail as an affordable, competitive, reliable, sustainable and valued transport mode that provides the backbone of South African freight logistics.
“Transnet is committed to the creation of a financially viable core network, which will culminate in the successful introduction of competition in freight rail operations,” said Transnet Group Chief Executive, Michelle Phillips.
“Through this rail reform process, we are going to witness a significant transformation in the sector which will see Transnet become both a provider of world-class infrastructure and a user of the infrastructure,” said Phillips.
She said the reform programme was an integral part of the entity’s recovery plan. “We are confident that these changes in the freight logistics sector will ultimately increase exports, economic growth, and jobs, while we provide much-needed support to critical sectors of the South African economy.”
In October 2023 Transnet announced the establishment of an interim Infrastructure Manager, to assume ownership of the rail infrastructure, capacity allocation, train scheduling and access charges. Since then, work has been under way to develop the draft Network Statement, in consultation with key stakeholders.
It is expected that the Network Statement will be finalised in 2024/25, and that the process for third-party access will then commence in the second half of the year.
The draft Network Statement is available on the Transnet website https://www.transnet.net/Pages/Network-Statement.aspx