It has become predictable and commonplace for the African Rail Industry Association (Aria) to be used as the voice of a few individuals who make their sentiments known via the media — always ahead of a significant development that brings hope and helps build trust in Transnet.
We find it ironic that this latest narrative comes soon after President Cyril Ramaphosa’s meeting with Transnet and ahead of the impending visit to China by public enterprises minister Pravin Gordhan. The long-standing issue of locomotives linked to China Railway Rolling Stock Corp has been a key constraint in Transnet’s operations.
Since 2022 Transnet Freight Rail has responded at great length to Aria directly on third-party slot sales and other issues of common interest. It is mind-boggling that it is using the media to speculate and cause disruption to a well-intentioned process that is primed to help business growth for all.
The allegations by Aria CEO Mesela Kope-Nhlapo about the third-party access project are misleading to our customers and stakeholders, and are likely to bring our entity further into disrepute. Aria appears to take a similar approach to that of Stellenbosch University academic, professor Jan Havenga, who is pushing agendas for certain sectors of the private sector.
The assertions by Aria in the article are so skewed and are laced with so many incorrect assumptions that we can only view this as an attempt to create exaggerated alarm and enable wholesale privatisation of freight rail for the benefit of a few members of the association at the expense of the national interest.
The assertions by Aria in the article are so skewed and are laced with so many incorrect assumptions that we can only view this as an attempt to create exaggerated alarm and enable wholesale privatisation of freight rail for the benefit of a few members of the association at the expense of the national interest.
This is not the first time that Aria has presented a biased narrative of the state of the freight rail industry in the media, or presented incorrect facts to drive a particular narrative about the role of the state in the economy.
In terms of third-party access, the slot sales process is being implemented and Aria is aware of this. There is no breach of policy. It is imperative to highlight that the process for implementation of the national rail policy is prescribed by the department of transport in the White Paper. It will follow appropriate steps, which must include these critical elements among others:
- Completion of the national rail master plan;
- A clear funding strategy for the network, including cost and revenue-recovery tariff models;
- Enactment of the National Rail Bill;
- Publishing procurement and localisation guidelines for the supply of rail inputs including rolling stock and infrastructure components; and
- Security management interventions as outlined in the White Paper.
Transnet is undertaking a rigorous process of formulating its position on the national rail policy for consideration by its board and for discussion with the department of transport. The department is conducting stakeholder engagements, which are a prerequisite and are crucial for the eventual enactment of the policy into law.
In the meantime, Transnet has launched the first phase of third-party access on selected routes to test the concept under the prevailing legislative landscape, while the department of transport develops a national rail policy implementation framework and enabling interventions as outlined in the White Paper. The phase 1 pilot will provide insights for broader implementation once the department is ready. While these efforts are under way, Transnet is open to collaboration with its customers on alternative solutions on various corridors.
The steps we have taken so far on third-party access are intended to pave the way for accelerated implementation of this important process as soon as it becomes legislatively feasible to do so. The learnings of the pilot phase will provide insights to fine-tune the concept before it is fully implemented on the broader network at the correct moment.
Traxtion Sheltam, the successful candidate for the first phase, has since requested a revised date for implementation from July 1 as opposed to an April 1 kickoff.
We are analysing the pilot results to evaluate, among other things, the feasibility, effectiveness and potential risks of implementing third-party access on the core network. The learnings of this analysis will be key to seamless implementation of the next phase. Transnet is clearly demonstrating its desire to ensure speedy implementation of third-party access, and cannot be portrayed as delaying this process.
The ministers of transport and of public enterprises have appointed an interim rail economic regulator capacity council, which is tasked with developing the necessary institutional framework for third-party access on the Transnet network. This framework will guide us going forward.
* Mabaso is Transnet Freight Rail’s chief commercial officer
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