The minister of Transport, Fikile Mbalula, believes that this will open up the rail market for other operators to compete and improve operational efficiencies and service quality, which will attract cargo from road to rail.

On 23 March 2022, the Cabinet approved the National Rail Policy White Paper, which seeks to address the challenges faced by the industry and position the rail sector as the backbone of South Africa’s national land transport. Member of the National Assembly, Sinawo Tambo has recently asked the minister about the progress being made in revitalising railway networks in the country.  

ALSO READ: Plans to move trucks from roads to rails under way

Mbalula’s reply also reveals that a key player in the implementation of the abovementioned reforms is Transnet, which falls on the shareholding of the Department of Public Enterprises, as it owns, operates and maintains the majority of the rail freight network in the country. “The Department of Public Enterprises, as part of its responsibility to implement the National Rail Policy, must ensure optimal restructuring of Transnet’s rail-related businesses to ensure operational effectiveness and efficiency to make rail an attractive alternative for the movement of cargo from road to rail,” concludes the reply.

During a time when a lot of accidents involving trucks were occurring in some parts of the country, Mbalula announced that there is a possibility of moving trucks from roads to rails, in order to ease congestion and accidents caused by trucks on the road. Mbalula’s intention to move trucks from the roads to the rails came on the heels of the land transport survey showing that the volume of goods transported has increased by 26.4% in July 2022, compared with July 2021. The corresponding income has also increased by 32.9% over the same period. The survey further shows that income from freight transportation increased by 22.8% and the main positive contributors to this increase were:

•Primary mining and quarrying products (18,4% and contributing 6,3 percentage points);

•‘Other’ freight (31,7% and contributing 5,9 percentage points);

•Manufactured food, beverages and tobacco products (25,6% and contributing 3,0 percentage points); and

•Agriculture and forestry primary products (27,7% and contributing 2,3 percentage points).

OFM News