CHANGES TO the regulations governing the roadfreight industry and plans to lease vast sectors of Spoornet's freight rail network are expected to be announced by public enterprises minister Jeff Radebe in his budget speech in parliament today (April 14).
Spoornet maintains that there is a dedicated service and good profit in only 5 800km of its freight network and will retain control of this sector. It currently operates double that figure, and the other half is expected to be earmarked for leasing to private operators.
The changes planned in the road freight network, which have not been revealed at this stage, are aimed at creating what Spoornet senior personnel claim is a 'better playing field' for rail operations.
Radebe's announcement comes nine months after he stated that restructuring was needed urgently to eliminate losses. Spoornet expects to show a loss of R200m for the year ended March 2000, which is worse than the loss of R135m recorded the previous year.
Spoornet is to be divided into six corporate entities by the end of September this year, focusing on general freight and passenger services. Divisions to be partially privatised include Coal-link and Orex, the Richards Bay and Saldanha coal and steel operations respectively.
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