The Multi-Modal Inland Port Association (Mipa) has welcomed the release of Transnet's Network Statement as a landmark development that will open South Africa's rail network to third-party operators at an affordable cost.
The network statement, which was approved by Minister of Transport, Barbara Creecy in December 2023, provides a clear framework for private-sector participation in the rail sector, a move that is expected to transform freight logistics in the country.
The statement outlines the terms and conditions for access to the national rail infrastructure, including access conditions, capacity allocation and pricing structures. The initiative is considered a key milestone in the implementation of the National Rail Policy White Paper and the Freight Logistics Roadmap, which aim to position rail as the backbone of South Africa's transport system.
Creecy has described the statement as a critical step towards achieving the government's goal of moving 250 million tonnes of freight per annum by rail within the next five years.
Mipa chairperson, Warwick Lord, welcomed the announcement, describing it as positive for the freight industry.
"The release of the network statement is a transformative moment for South Africa's logistics sector.
“It provides the clarity and certainty needed for private investment in rail operations, which will help us achieve the government's ambitious freight targets. This is a significant step forward in creating a more efficient, sustainable and competitive transport system.”
The Network Statement was developed through an inclusive consultation process involving Transnet, key stakeholders in the rail industry and the Interim Rail Economic Regulator. It provides a comprehensive overview of the freight rail network, including key corridors, infrastructure and services.
The tariff system, based on a differentiated methodology, ensures fair and transparent access for third-party operators, enabling them to plan their services efficiently and invest in rolling stock.
RailRunner South Africa Managing Director, Mike Daniel, highlighted the importance of the development for private operators.
"With the network statement now in place, we can accelerate the deployment of our innovative road-to-rail solutions.”
He said RailRunner's sustainable technology, which is 40% lighter than conventional wagons and requires fewer locomotives, was suited to operate under the new tariff regime.
“This will allow us to offer an efficient and sustainable transportation option, working in conjunction with road transport to optimise the movement of goods and reduce reliance on single-mode solutions. This service offering roll-out will not be smooth sailing from the get-go because of the legacy issues of security and signalling. However, we remain optimistic that the ‘Rainbow Nation’ will rise above these problems by deploying innovative solutions such as Terminal Anywhere and others.”
Lord said Mipa, which represents six major inland ports in South Africa and one in Namibia, was committed to supporting the shift from road to rail. Its members are working to implement efficient intermodal transfer facilities, develop technology-driven logistics solutions and establish secure supply chain corridors.
“The publication of the network statement is a significant step towards realising the vision of a modern, efficient and sustainable rail system in South Africa,” said Lord.
“Mipa and its members are committed to working with all stakeholders to ensure the success of this initiative, which promises to unlock new opportunities for economic growth, job creation and environmental sustainability. There is no doubt that road and rail transport are interdependent and must work together seamlessly to ensure efficient and sustainable transportation.”
The association’s members are working with the Transnet Rail Infrastructure Manager to ensure the smooth integration of private operators into the network. This includes confronting challenges at ports and along key corridors, encouraging investment in strategic infrastructure and improving service levels to meet the needs of cargo owners and logistics service providers.
