The newly established Transnet Rail Infrastructure Manager (TRIM) has confirmed that it received 98 applications for slots being made available across the network to private train operating companies (TOCs) by the February 28 submission deadline.

The applications were opened to third-party operators following the approval of a Network Statement in December outlining the condition of the network and its capacity to accommodate TOCs.

The statement identified the initial slots across five corridors that would be made available to third parties and also included tariff rates for accessing the network based on a two-part tariff methodology, with one based on train kilometres and the other on gross-train kilometres.

The statement was updated on February 4 to cover the full network, which is assumed to have a current yearly capacity of 209-million tons, and to integrate black economic-empowerment criteria.

This resulted in an extension to the initial deadline for submission, from February 7 to February 28.

In parallel, the TRIM submitted a proposal to the Interim Rail Economic Regulatory Capacity (IRERC) for new, far higher tariffs for 2025/26 financial year, which begins on April 1.

The new tariffs would be applicable to successful applicants that submitted a bid by February 28, as the evaluation of their applications would be completed only at the end of April and any contracts were only likely to be concluded in May at the earliest.

The IRERC is expected to make a tariff determination by the end of March, but there is concern that the viability of many applications, especially those based on smaller train sizes, will be negatively affected should TRIM be awarded the increases it is seeking in its tariff proposal.

For instance, should TRIM's preferred option be approved, tariffs for railing automobiles would rise by 300% from R30 per train kilometre currently to R120, or from 4.41c to 26c when measured on a gross-train kilometre basis.

Similarly steep hikes are being sought for containers, mineral exports not linked to the coal or iron-ore corridors, grain, and tankers and other general freight.

Speaking at an event hosted by Investec, TRIM CEO Moshe Motlohi underlined his commitment to the opening of the network to private-sector participation and to working within the tariff envelope approved by IRERC.

However, cost-reflective tariffs, subsidy support and/or private investment would also be needed to fund the investment backlogs that were afflicting the network.

He also stressed that the reforms under way to open the rail network to private operators was at an early stage and stressed that there would be an ongoing allocation of slots to TOCs in line with the objective of raising freight rail volumes to 250-million tons by 2030.

The next version of the Network Statement would be published in April and the applications for slots would be opened yet again from April 1 to June 30.

Motlohi also committed to TRIM running a fair and transparent process that he promised would not be influenced by the fact that Transnet owned both the TRIM and the Transnet Freight Rail Operating Company, which had previously monopolised the network and which was set to remain the dominant operator for years to come.

“Our orientation at TRIM is that South Africa has to come first, followed by customers, then Transnet.

“It’s not going to be about us [Transnet] first, and everything else falling to pieces.”