Transnet Freight Rail must remain in the hands of the state even as it contemplates giving private players a stake in its operation to help rebuild and reform and restore ailing state-owned entity.
The National Rail Policy in tandem with the Economic Regulation of Transport Bill and the Freight Logistic Roadmap, is geared towards restoring the moribund parastatal through rail reform practices as an effort to return the entity to economic prosperity and economic vibrancy.
The state-owned enterprise, in the business of operating Transnet’s freight rail division, has struggled with vandalism, management inefficiencies, and has been undermined by mafia kingpins who demanded from legitimate businesses a cut of their proceeds without providing any stitch of productive work.
Transnet has now released the draft network statement, which provides a roadmap for the introduction of third-party access to the country’s rail network.
Cosatu’s spokesperson Matthew Parks said while the trade union federation welcomes the move to bring about efficiency at the rail entity, negotiations should not only be left to the private sector and Transnet, but should be extended to the workers also, stating that it is important that “the union should also be fully involved in processes that seek rail reforms”.
“Transnet ports and rail infrastructure play a key role in the economy. They need to be fully operational to unlock mining, manufacturing, and agricultural exports and to create jobs,” said Parks.
“The challenges Transnet ports and rail face have a huge impact on the economy, jobs and state revenues needed to fund public services society depends upon.
“We believe Transnet needs to remain owned by the state given the strategic role it must play in the economy,” he said.
Parks said while reforms are necessary and required, Cosatu anticipates that further talks around rail reforms will have to be discussed with other partners, including the National Logistic Crisis Committee (NLCC), the National Economic Development and Labour Council, and the government.
The NLCC is a committee entrusted to addressing the rail, port and road crises.
An expert in the rail infrastructure, Leonard de Villiers, commended the efforts by Transnet to invite the participation of private organisations “as a way of resolving difficult issues”.
