Following Transport Minister Barbara Creecy’s approval of the publishing of the Transnet network statement, which facilities open access to South Africa’s rail network by third-party operators, the Road Freight Association (RFA) has raised concerns about potential challenges that could arise for prospective participants.

RFA CEO Gavin Kelly points to the possibility of disputes, drawing parallels to issues experienced at the Port of Durban during a trial period when of Transnet Freight Rail sold sections of the network between 2022 and 2024. The trial period aimed to gain insights from private operators and develop cost-reduction strategies.

Stakeholder concerns over Transnet’s privatisation efforts at the Durban container port were highlighted when the Durban High Court in October issued an interim interdict preventing Transnet from negotiating and implementing a contract with a chosen contractor. This followed a legal challenge by a losing bidder, leading to some calling for a “do-over” of the process.

Kelly, who has long advocated for changes in South Africa’s rail operations, acknowledges the extensive reach of the network and its potential to become a cornerstone of the national economy.

However, he remains cautious about State-owned Transnet’s ability to create the required environment for meaningful third-party operator participation in an efficient manner on the rail network.

Kelly adds that the rail network’s signalling, mass carrying capacity, points, sidings, warehousing, security and other infrastructure may not be able to accommodate a flood of trains and other logistics chain requirements.

“Are the train sets adequate - or will these all need to come from the third-party operators? Who will adjudicate and resolve disagreements between these third-party operators or between them and Transnet itself?” Kelly argues.

RFA points out system failures, or even third-party failures, should not result in the collapse of various routes identified for open access.

Kelly cites the example of roads and towns that have not been able to carry the volume of vehicles and axle massloads, with the increasing number of trucks that have been moving cargo across the country.

Despite these concerns, Kelly says the publication of the network statement is an important step forward. He encourages companies interested in becoming third-party operators to study the statement and engage with the Department of Transport to getting rail operations back to viable and efficient service.

“This year will be crucial in ensuring that South Africa will turn around its economy and wealth creation for all citizens in the form of employment, with an invigorated logistics hub, chain and development node for all modes of transport. There should be no argument that road and rail must symbiotically work together,” Kelly concludes.