The end of Transnet rail monopoly and the beginning of better things?

The Road Freight Association (RFA) notes that “the Minister of Transport, Ms. Barbara Creecy has approved the publishing of the Transnet Network Statement for the rail network in South Africa. The Network Statement facilitates open access to South Africa’s rail network by third-party operators.”

Are we about to see great things – or are we doomed onto a circle of argument and squabbles by various potential third-party operators as recently seen at the Port of Durban?

For years, the RFA has been very vocal about the need for “revolutionary” change in our rail operations. Despite its current challenges, South Africa's rail network, with its extensive reach and some (to this day) state-of-the art infrastructure in certain areas, has the potential to become a cornerstone of the national economy, driving growth and creating numerous jobs.

However, there are some nagging questions: can Transnet REALLY create the required environment for third party operators to operate efficiently on the rail network? Is the rail network (ie the signalling, rail mass carrying capacity, points, sidings, warehousing, security and other infrastructure) ready to accommodate a “flood” of trains and a drive from the national 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?

Whilst a huge amount of cargo is delivered via road every day, the reality is that the cargo needs to move between the origination and destination and the challenge will be creating an environment where system failures (or third-party failures) do not have a resultant collapse of the various routes identified for the open access.

The RFA has continually noted that rail needs to “carry its load” – and this has been clearly underwritten by the impact that we have all witnessed, on roads across the country. These roads were never built to take the volumes of vehicles nor the axle massloads (this being before any overloading comes into play) – and both roads and towns along the way have had a Jeckell and Hyde relationship – damage and wear to the infrastructure but increase in local business trading to support the increase in road freight traffic through these regions.

Truly, the publishing of the network statement is an important step.

The RFA encourages all companies that could become a third-party operator, to study the statement and to engage with the Dept of Transport in getting rail operations back to a viable and efficient service. There will be many opportunities for road transport and there will be changes in how transport is done (in the long run), but we need to get the foundation pieces running. Reliably. Efficiently. Securely. Affordably.

The Road Freight Association will watch developments with keen interest – 2025 will be a crucial year in ensuring that South Africa (thereby its economy and wealth creation for all its citizens in the form of employment) will turn around and become an invigorated and vibrant logistics hub, chain and developmental node for all modes of transport. Surely, by now, there should be no argument that road and rail can (and must) symbiotically work together.