TFR responds to criticism over branch line concessioning

Transnet Freight Rail has denied claims that it is palming off branch lines on the private sector in an effort to rid itself of non-profit-making assets. Responding to questions at the monthly Transport Forum in Johannesburg last week, William Mothibedi, TFR senior manager: strategy and long term planning, commented: “There is no doubt that a different operator could possibly benefit more out of this network than we are at present. A large part of this network is lying idle at the moment and could be put to good use.” With not enough money for the entire network, much of the investment by TFR is happening on the core network resulting in the branch lines deteriorating further. Albert Links, TFR executive manager branch line and network, said it was not a decision taken lightly. “The broad principles at present, should TFR concession its branch lines, include the retention of the core assets, while the concessionaire will have about 25 years of use of these assets. The “voetstoets” principle will apply and the possible access to specific marshalling yards will still be discussed in an effort to allow for interface with the core network.” He said that the risk of investment and operation would be with the concessionaire and therefore no concession fee was likely to be charged. “A number of feasibility studies have already been done and there is a definite interest from the market. We have had very positive responses so far.” Some 115 companies have officially registered their interest with TFR while another 47 have signed an “expression of interest” with the parastatal. Pat Corbin of the Johannesburg Chamber of Commerce and Industry said there were still concerns around the concessioning of branch lines at present. “The network is being used presently mostly to serve the agricultural sector which is very seasonal. Will it be profitable for a concessionaire to take over this very neglected network? Maybe if the mining industry takes on the branch lines the situation will look different.”