Durban - The announcement by Transnet that it has decided to approach private sector operators to lease its container corridor between Durban and Joburg for 20 years, has been greeted with mixed reactions from the freight industry.
Transnet spokesperson Ayanda Shezi said in a statement that the plan was aimed at growing Transnet Freight Rail’s (TFR) freight container business.
“Transnet SOC Ltd (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.
“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 Joburg and Durban) for a period of 20 years.”
Shezi said the container corridor rail mainline was a fully electrified double-track 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. The involvement of the private sector is intended to result in a significant shift of containers from road to rail, and increased operational reliability and efficiency. The operating lease will provide for the required investment in the rehabilitation, upgrade and maintenance of the rail network and rolling stock assets.”
Cobus van Vuuren, Untu general secretary, said they were opposed to privatisation but the move did not come as a surprise.
“This is (an) instruction from the government to engage private strategic partners and Transnet is not a policymaker and has to follow government instructions.
“Transnet has no finances and they are owing large amounts of money on loans. The fact is we can’t allow it to deteriorate into positions like other state-owned enterprises. By leasing the Container Corridor it will enable them to have much-needed finances.”
Van Vuuren said that the safety of their members’ jobs was of paramount importance.
“We will fight to ensure that all members’ jobs are retained. Furthermore, we want to see job creation come out of this. ”
The SA Association of Freight Forwarders said although the deterioration of rail freight had been a reality for some time, the acceleration of disruptive occurrences due to crime and malfunctioning equipment and stripped infrastructure had been a disaster.
“The RFQ issued by the TFR to the market provides a glimmer of hope that rail can return to handling volumes of a bygone era when it was productive, offering a reliable level of service. The public and private sectors must collectively deliver a solution and do this with the utmost urgency. Lest we fail this moment and the future – 10 years from now, it may be that we might have created a monster with massive unintended consequences. Ultimately, we cannot emphasise enough the need for a functioning rail system.”
Mireille Wenger, Western Cape provincial Minister of Finance and Economic Opportunities, also welcomed Transnet’s move.
“It is the Western Cape government’s view that private sector participation will be essential to boost investment in infrastructure, improve efficiency and performance and ultimately, unlock private sector-led economic growth that creates jobs,” she said. “We would now like to see similar momentum towards private sector participation at Transnet assets in the Western Cape, with a special focus on the Port of Cape Town.”