Revised Network Statement shows clear intent to move agricultural products back to rail

POLICY PERSPECTIVE by Theo Boshoff

-  Theo Boshoff

Road transport has steadily taken over from rail transport in South Africa over the past 20 years. Rail has an inherent cost benefit over road for long-haul transport, but reliability is paramount for perishable products. This trend is not good for the country at large as it leads to increased costs in the value chain and puts significant pressure on our road system.

The Presidency convened a core group of experts under the banner of Operation Vulindlela to reverse the trend. The teams’ proposals were captured in the Freight Logistics Roadmap adopted by Cabinet towards the end of 2023. The roadmap recommended a fundamental shift towards an open, competitive system between different train operating companies (TOCs). To facilitate this, a number of building blocks were put in place during 2024, including:

• The ‘unbundling’ of Transnet Freight Rail into an Infrastructure Manager (TRIM), Operating Company (TFROC) and Rolling Stock Leasing Company (ROSCO);

• The creation of an Interim Economic Regulator (IRAC) via the Economic Regulation of Transport Act; and

• The Network Statement gazetted on 19 December 2024.

The Network Statement sets out the process, conditions and fees to which any TOCs (including Transnet) must adhere in order to operate on South Africa’s rail network.

SIGNIFICANT STEP