President Cyril Ramaphosa has set up another committee that is going to resolve the crisis in the rail sector.
Transnet has been under immense pressure after the rail network was destroyed by cable theft.
Ramaphosa said they will work closely with business in resolving the freight and logistics sector.
It was reported recently that Ramaphosa has been urged by business to act against vandalism on the rail tracks as it was having a huge impact on the industry.
The destruction of infrastructure is costing the country billions of rand.
Minister of Trade and Industry Ebrahim Patel said cable theft costs the country more than R40 billion a year and the figure could be higher.
It was also reported a few weeks ago that only 25% of the rail line between Johannesburg and Durban was operational.
This week Transnet suspended its main iron ore rail line between Saldanha and Sishen mines due to cable theft.
Ramaphosa, who was replying to the budget vote debate in Parliament on Thursday, said they have met with business and labour to deal with the rail line crisis.
“Following a number of engagements with business and labour around challenges in the logistics sector, the Presidency, working with the relevant government departments, is setting up a national logistics crisis committee to resolve the crisis in freight and rail.
“There are many such examples of co-operation between government and business in particular. Contrary to suggestions of a gulf between this administration and business, both the deputy president and I, as well as ministers, meet with representatives of South Africa’s business community on a regular basis.
“We meet to discuss their concerns and suggestions, and to forge common solutions to critical problems. Our experience has been that the leadership of business appreciates the value of partnership and constructive engagement. As government we do not see the role of business as oppositional,” said Ramaphosa.
Ramaphosa also said while they understood the anger and frustrations of the people over load shedding and that the next few months will be difficult, Minister of Electricity Kgosientsho Ramokgopa has put together a plan to mitigate against power cuts.
This would include the procurement of new generation capacity.
Ramokgopa and Ramaphosa have said the country will get 10 000 megawatts of new generation capacity from solar, wind, gas and other sources of energy.
The government was also going to get 3 000MW by the end of the year. This would be after repairs have been completed in the six units at Kusile, Medupi and Koeberg.
Ramokgopa has said if there were more megawatts on the grid it would stabilise the energy security supply.
“The anger and frustration that South Africans feel in the face of sustained load shedding is understandable. At times like this, the electricity crisis appears unrelenting, as if there is no end in sight.
“Yet, if one considers the work that is being done and the progress that is being made – as outlined yesterday (on Wednesday) by Minister Kgosientsho Ramokgopa – it is clear that we have solid ground for hope. While we have been honest and forthright about the difficult months ahead, we are confident that the measures now in place, including the massive new investment in electricity generation capacity, will enable us to end load shedding and achieve energy security,” said Ramaphosa.
siyabonga.mkhwanazi@inl.co.za
Current Affairs