Freight sector welcomes rail reform to ease SA’s transport bottlenecks

The Road Freight Association (RFA) has expressed strong approval for the recent announcement made by the Minister of Transport, Honourable Barbara Creecy MP, regarding the outcome of the Train Operating Company (TOC) slot allocation process.

For years, the RFA has emphasised that a well-integrated and collaborative freight logistics network is crucial for South Africa's economic prosperity.

The roles of both rail and road transport are indispensable in the effective and cost-efficient movement of freight across the nation.

The recent decision to allow 11 private TOCs to engage with Transnet for contract preparations is a clear indication of the government’s commitment to structural reforms designed to benefit the entire populace.

With this initiative, the government anticipates an increase in Transnet's cargo volumes from the current 160 million tons to an ambitious 250 million tons annually within the next five years, a remarkable growth of 90 million tons.

This enhancement is expected to better utilise Transnet's capacity while introducing privately owned third-party operators, which could revitalise the ailing rail network and facilitate the transition of freight back to rail from congested roads.

Moreover, this positive shift is anticipated to create numerous jobs within the rail freight sector, as it will necessitate partnerships with road freight operators to ensure seamless transport of goods to and from trains or multi-modal hubs.

The RFA believes that these collaborations are essential to establishing an efficient and integrated logistics ecosystem.

While this announcement is indeed a moment for celebration, the RFA underscores that it represents merely the beginning of a lengthy journey sparked by the Cabinet's approval of the National Rail Policy in March 2022.

The successful implementation of this initiative hinges on a clear and stable regulatory framework, equitable access to efficient ports and vital infrastructure, along with a unified commitment from all stakeholders towards operational excellence.

The path forward is substantial. The Department of Transport must ensure that regulations foster an environment supportive of new entrants, while also maintaining and upgrading existing rail infrastructure promptly.

Furthermore, seamless collaboration between rail and road systems is essential for success. The RFA is poised to collaborate with the Department of Transport, Transnet, and the newly appointed TOCs to forge a resilient, competitive, and integrated logistics system that meets the diverse needs of freight stakeholders across South Africa.

IOL