By Thebe Mabanga
South Africa’s railway reform programme requires urgent action and close collaboration among all role players to build on the momentum achieved last year, according to Mesela Nhlapo, CEO of the Africa Rail Industry Association (ARIA).
In August last year, the opening of South Africa’s rail network became a reality when Transport Minister Barbara Creecy named 11 train operating companies to run more than 40 routes on the national rail network — previously accessible only to Transnet.
As part of preparations for third-party access, Transnet restructured Transnet Freight Rail by separating it into an Operating Company and a Transnet Infrastructure Manager, and finalised the Network Statement, which sets out the terms and conditions for access.
Nhlapo says key stakeholders must now move with speed to avoid losing the momentum created by these reforms.
“All train operating companies, public and private, must transition to active operations within 12 to 18 months. The transport regulator, Transnet and all operators must work in concert to finalise access agreements, secure rolling stock and demonstrate safety compliance. Delays by any party undermine the collective objectives,” Nhlapo said in an interview with Inside Politics.
She identified the adoption of the Luxembourg Rail Protocol — which came into effect in May last year — as a critical enabler of rail reform, providing a governance framework for the financing of rolling stock and related equipment.
Nhlapo called on the financial sector to operationalise rail financing mechanisms, while urging the Departments of Transport, Justice and National Treasury to align legislation and finalise the establishment of a transport regulator.
Towards the end of last year, private rail operator Traxion announced a R3.4 billion rolling stock investment programme, including R1.8 billion for 46 locomotives and R1.6 billion for freight wagons — the largest private-sector investment in freight rail to date.
Infrastructure rehabilitation also needs to be accelerated, Nhlapo said.
“Transnet’s investment in track, signalling and depot modernisation creates the foundation on which all operators depend,” she said, adding that private operators must ensure reliability and transparency.
Another area requiring urgent attention is the consistent application of localisation rules across all rail procurement, which also presents opportunities under the African Continental Free Trade Area (AfCFTA).
Finally, Nhlapo stressed the need for skills development institutions to align more closely with industry requirements.
She said technical and vocational education and training (TVET) colleges, universities of technology, traditional universities and sector education and training authorities (SETAs) must collaborate with operators to develop demand-driven curricula and provide manufacturing plant-based training.
Rail reform remains a central pillar of South Africa’s economic recovery, alongside energy reform, and forms part of the first phase of logistics reforms under Operation Vulindlela.
INSIDE POLITICS