Transnet must stop running South Africa’s freight rail network

Chris Hunsinger, the DA’s spokesperson on transport, said that South Africa must move away from Transnet running the country’s freight rail network.

He argued that the government must allow private companies to take over the operation of key rail lines across South Africa.

Transnet is a state-owned company that owns and operates South Africa’s heavy transport infrastructure, including ports and the rail network.

It plays a crucial role in South Africa’s economy as it controls the heavy transport corridors to connect inland factories, mines, and farms to the coastal ports.

Despite its importance, Transnet has been crushed by years of corruption, mismanagement, and political interference.

This has caused maintenance backlogs, locomotive shortages, cable theft, and port congestion, hampering many industries.

The export bottlenecks have caused tremendous damage to the South African mining and manufacturing sectors.

Transnet has deteriorated to such an extent that much of the country’s traditional rail freight is now trucked to ports.

To address performance issues and fund infrastructure modernisations, South Africa introduced reforms.

These reforms will allow private operators access to the freight rail network and bring in private terminal operators.

However, according to Hunsinger, this is not enough. He wants South Africa to move away from Transnet running the country’s freight rail network.

He said that the Transnet Rail Infrastructure Manager’s (TRIM) latest Network Statement does not go far enough.

“It allows some private companies to run their trains on the network, but Transnet will still control the tracks, infrastructure and management of the network,” he said.

Despite bringing in some private sector participation, it keeps the same failing system under Transnet in place.

The DA called for private companies to be granted concessions to operate parts of South Africa’s freight rail network.

“This means they would be responsible for operating, maintaining and investing in those lines,” Hunsinger said.

“The current plan also gives the private sector too small a role. By 2030, private operators are expected to move only around 10% of the targeted freight volumes.”

He highlighted that Transnet will remain responsible for the vast majority. “The 10% handled by private companies is not enough,” he said.

There are also concerns about the process involving the 11 private train operating companies that were previously given conditional access to major freight corridors.

“The related tender process was recently cancelled and will now have to be redone,” Hunsinger said.

“This creates further delays when South Africa desperately needs more freight moved from roads onto rail.”

The DA has, therefore, called for clear timelines for when private concessions will be developed and implemented.

“Businesses, farmers, miners and exporters cannot keep paying the price for a freight rail system that does not work,” he said.