South Africa’s railway system has entered a new chapter, according to Minister of Transport Fikile Mbalula.This follows Cabinet’s approval of the White Paper on National Rail Policy (NRP) back in March. Mbulala considers the document to be an “ambitious policy” that will bring about a renaissance in rail transport.“The White Paper creates policy certainty that introduces radical structural reforms, which enable broader participation and open new avenues for investment and competitiveness,” he said during a recent stakeholder engagement event. “A key element of this is the opening up of space for private sector investment and effective economic regulation that ensures fair and regulated access to both primary and secondary net works.”Mbalula admitted to the current railway system lacking efficiency and contributing to economic growth in a limited way – and to the deferred maintenance of assets having resulted in a decline in infrastructure.“The White Paper on NRP intends to place rail on a sound footing as the backbone of a seamlessly integrated transport value chain that makes a meaningful contribution to the economy,” said Mbalula. Key aspects of the policy include enabling railway investment by exploiting rail’s genetic technologies to achieve the envisioned railway renaissance in market spaces such as heavy haul, heavy intermodal which includes double-stacked containers, contemporary urban and regional rapid transit and higher-speed rail, from 160 to 200km/h and up to 300km/h.“Secondary interventions will give effect to institutional repositioning and allow for on-rail competition. This means that the rail market will be open for other operators to compete and improve the operational efficiency that’s needed to improve service quality and competitive pricing in freight rail.”The government says the interventions planned will reposition freight rail to achieve inherent competitiveness as the sector increases axle load, speed and train lengths, which will result in an increase in productivity as well as improved ef f icienc y.One of the key tenets of the policy is third-party access – a move the private sector has been calling for for some time.This would go a long way in revitalising branch lines, which in turn could boost agricultural exports. According to Mbalula, strategic branch lines will be identified and then commissioned to the private sector over the short to medium term.“The growth of the agricultural industry – and especially the fruit-producing and fruit export business – requires focused attention on the revitalisation of branch lines,” he said.However, the African Rail Industry Association (Aria) has expressed concern about the restrictive terms and conditions imposed by Transnet on the use of the national rail network for private third-party freight operators. Whilst welcoming the NRP and the framework it sets out to allow for third-party access, the association is not convinced that Transnet’s approach is going to attract the private sector. Aria has maintained that third-party access could be a game-changer for South Africa’s freight rail, but Transnet’s conditions for private third-party access offers no long-term prospects for potential investors.It says the fact that slots have been offered on a voetstoots basis, and only for two-year contracts, means there is little hope for success.Another ongoing worry has to do with safety and security. Theft and vandalism of rail infrastructure has been an ongoing occurrence and will have to be addressed to ensure active private sector engagement.According to Mbalula, the corporate sector needs to find constructive ways to deal with crime in its various forms, including the theft of scrap metals and other criminal activities that sabotage the country’s economy and the growth of the rail sector.He said he was hopeful that the private sector would engage and grab the opportunity to bridge the massive investment gap that currently exists in the railway sector while also improving operational and managerial efficiency.Plans are afoot to establish a working group consisting of government, the rail industry and state-owned companies to coordinate the critical path of implementation.
