SA’s Transnet Can Be A Game Changer

(3 Minutes Read)

The Network Statement, if implemented properly, presents a means to reduce Transnet’s debt, which reported a loss of R7.3 billion in its most recent financial year

The finalization of Transnet’s Network Statement (Network Statement) marks a pivotal moment in the reform of South Africa’s rail sector, signaling that access to the rail network by private train operator companies (TOCs) will soon be a reality.

Published on 20 December 2024, following the promulgation of the Economic Regulation of Transport Act (ERT Act), the final Network Statement sets out the practicalities for TOCs to use the South African rail network with its own customers, subject to governance by the ERT Act, and economic oversight by the Transport Economic Regulator (Economic Regulator).

The Network Statement, if implemented properly, presents a means to reduce Transnet’s debt, which reported a loss of R7.3 billion in its most recent financial year, improve the condition of South Africa’s rail network, efficiencies, trade competitiveness and connectivity, encourage both local and international investment, lower transport costs and create jobs and boost the South African economy, as it will benefit the larger supply chain reliant on rail and transport in general.

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However, successful implementation will essentially depend on addressing security risks, modernizing infrastructure, and fostering investor confidence through transparent, equitable, and well-regulated market access. If implemented effectively, this reform could position rail as a catalyst for sustainable economic revitalization in South Africa.