Business hails rail reforms as a big step forward

BUSINESS has welcomed the allocation of rail slots to 11 new train operating companies (TOCs) across 41 routes and six corridors, as announced by Minister of Transport Barbara Creecy.

- PHILIPPA LARKIN

Busiswe Mavuso, the CEO of Business Leadership South Africa, said it was an important step towards a competitive and thriving logistics system in South Africa.

"This is the realisation of years of intense collaboration between business and government to improve the performance of the rail network by introducing private operators and investors. When we speak of structural reform in logistics, this is what we mean - creating the competitive environment that will drive efficiency, investment and ultimately economic growth. This step is one along the plan that we have been advocating for through the National Logistics Crisis Committee," she said.

She said introducing competition was never going to be easy.

"Breaking up a monopoly requires political courage, regulatory sophistication and sustained commitment from all stakeholders. The fact that we now have 11 new entrants preparing to move 20 million additional tonnes of freight annually from 2026/27, and able to participate in funding for future growth,