Hijack of Transnet rail policy has the backing of Presidency - industry guru

Minutes recorded advisory body claiming 'mandate'

- By Setumo Stone and Bongani Mdakane

Bombshell minutes of a meeting held by Business for South Africa (B4SA) and Interim Rail Economic Regulator Capacity (IRERC) have revealed a plan by top private players in the rail sector to hijack state rail policy and redirect prized assets of Transnet into private hands, allegedly with the blessing of the office of President Cyril Ramaphosa.

At the centre of the controversial move is rail industry guru Jan-Louis Spoelstra, who, during a virtual meeting with other sector stakeholders on February 17, alleged that the Presidency backed IRERC, a team of ministerial advisers led by economists and experts, to dictate to the Transnet Rail Infrastructure Manager (Trim) on the development of a policy document titled “Network Statement”, which sets out rules and tariffs for the use of the rail network by private operators.

The meeting, titled “B4SA Rail Operating Company Engagement - Precursor to the Virtual Information Gathering”, attended by key rail industry stakeholders, was convened by B4SA, an alliance of business leaders partnering with government, amid heated debate over the network statement.

According to the minutes, Spoelstra claimed, “From the president's office, they want IRERC to actually not just propose to Trim but to state what changes must come into the network statement... I even have the mandate from that office to rewrite portions... if Trim didn't listen.”

The IRERC's mandate is strictly advisory, as stated in the rail reform policy. In addition to recommending reforms to the minister of transport, it reviews Trim's compliance with policies and facilitates stakeholder input.

IRERC is neither empowered to rewrite nor directly enforce changes to the network statement. Also, IRERC reports to the minister and not to the president's office. It is designed to operate as a consultative forum rather than an executive regulator.