Government will allow private rail operators access to Transnet’s rail infrastructure to overhaul the country’s freight rail system. This is according to President Cyril Ramaphosa who delivered the State of the Nation Address (SONA) at the Cape Town City Hall on Thursday.
Ramaphosa says there are severe inefficiencies in our freight rail system.
“To deal with severe inefficiencies in our freight logistics system, we are taking action to improve our ports and rail network and restore them to world-class standards. We have set out a clear roadmap to stabilise the performance of Transnet and reform our logistics system. Working closely with business and labour, we have established dedicated teams to turn around five strategic corridors that transport goods for export purposes. And we are overhauling the freight rail system by allowing private rail operators to access the rail network,”
Ramaphosa says Transnet has appointed an international terminal operator to help expand the port in Durban. He added that the conflict in the Middle East creates an opportunity for the country’s ports to get more traffic as ships are being rerouted.
“The number of ships waiting to berth at the Port of Durban which has experienced severe congestion in recent months has reduced from more than 60 ships in mid-November to just 12 ships at the end of January. Transnet has appointed an international terminal operator to help expand and improve its largest terminal at the Port of Durban. With the current conflict in the Middle East affecting shipping traffic through the Suez Canal, South Africa is well positioned to offer bunkering services for ships that will be rerouted via our shores,”
Video: President Ramaphosa delivers the 2024 State of the Nation Address
