Is the end of Transnet’s rail monopoly the beginning of positive change?

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

The need for revolutionary change

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.

Important questions for Transnet, third-party operators

However, there are some nagging questions:

1. Can Transnet create the required environment for third-party operators to operate efficiently on the rail network?
2. Is the rail network (i.e., the signalling, rail mass carrying capacity, points, sidings, warehousing, security, and other infrastructure) ready to accommodate a “flood” of trains and meet national logistics chain requirements?
3. Are the train sets adequate, or will these all need to come from third-party operators?
4. Who will adjudicate and resolve disagreements between these third-party operators or between them and Transnet itself?

The challenge of seamless freight movement

While 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. The challenge will be creating an environment where system failures (or third-party failures) do not result in the collapse of the various routes identified for open access.

The RFA has continually noted that rail needs to "carry its load" – and this has been 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 mass loads (this being before any overloading comes into play).

Roads and towns along the way have had a Jekyll-and-Hyde relationship – enduring damage and wear to the infrastructure but also benefiting from increased local business trading as road freight traffic has grown through these regions.

An important step forward

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 engage with the Department 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 and affordably.

Looking ahead

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.