The EFF has rejected Transnet’s intention to improve its container corridor between Johannesburg and Durban by outsourcing it to the private sector.
This after Transnet announced in January that it was planning to approach the market for the lease of its 670km run of double-track electrified rail container corridor for 20 years, noting that it does not have enough capital to keep the business running.
“Transnet, as part of its partnerships strategy, has decided to engage the market to invest in and grow Transnet Freight Rail’s (TFR) freight containerised business, which is the backbone of the manufacturing sector in the country,” the state-owned company said.
“To this end, Transnet will issue a request for qualifications (RFQ) to the market to identify parties interested in entering into an operating lease with TFR for the operation and maintenance of the container corridor [the line between Johannesburg and Durban] for a period of 20 years.
“The container corridor rail mainline is a fully electrified double-tracked rail line running from Booth in KwaZulu-Natal to Union in Gauteng. While the mainline is 670km in route length, the double line and various major marshalling yards and enabling rail lines take the total track length of the container corridor to 1 621km.”
Sinawo Thambo, spokesperson for EFF, said the strategic corridor was built with taxpayers’ money to improve industrialisation and the country’s economy, noting that it would be an act of “greed and senseless profiteering” to outsource it.
“The intention to outsource such a strategic line of business to the private sector by Transnet is to support the extractive neo-colonial economy that continues to steal Africa’s mineral resources for the benefit of America and Europe,” said Thambo.
“Failure to implement a comprehensive infrastructure expansion and maintenance plan undermined Transnet’s operations on all fronts.”
Thambo said there is no guarantee that outsourcing the corridor would improve the company’s operations.
“Transnet used to have the capacity to move over 200-million of cargo on an annual basis. There is no justification or evidence that outsourcing such a strategic and crucial function of Transnet will radically improve its operation.
“The sabotage of Transnet, in particular its build programme that was beginning to integrate sub-Saharan Africa and the rest of the continent through the creation of competitive corridor supply chains meant to integrate ports and railways, is driven by greed.
“Transnet is a public strategic asset built with taxpayer money to support industrialisation efforts for the benefit of all South Africans.
“To allow the outsourcing of such an important strategic line to be turned into a profit-making function when it was supposed to be meant for greater good is reactionary and confirms that Cyril Ramaphosa’s prepaid presidency is paying its funders at the expense of workers and all South Africans.”
Thambo is arguing that many state-owned entities that were previously outsourced or privatised were impaired, flagging corruption and maladministration.
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