South Africa ratifies Luxembourg Rail Protocol to enhance international financing opportunities

MINISTER of Transport Barbara Creecy has announced the country's ratification of the Luxembourg Rail Protocol in a move poised to transform the railway landscape in South Africa.

- BANELE GININDZA

Officially enforced from May, this protocol is set to unlock international financing avenues for new market entrants, enabling cheaper financing options for railway rolling stock.

Addressing the 25th Africa Rail Conference and Exhibition on Tuesday, Creecy emphasised the significant economic and environmental advantages of shifting freight and passenger transport from road to rail.

Creecy said South Africa's ratification of the protocol would support the development of international financing in the railway sector and was an important step in facilitating financing in the rail industry, which is a key element for social development and economic growth in the SADC region and whole continent.

"As a country, we therefore encourage our countries in the region and continent to consider this important instrument to enable rail investment with favourable terms and will foster interoperability in our railways," she said.