The minister of transport Barbara Creecy announces the outcome of the process to invite third party train operating companies.
The minister of transport Barbara Creecy announced the outcome of the process to invite third party train operating companies.
On September 1st the ad hoc process will commence for the successful candidates. The group CEO of Transnet, the group COO of Transnet and the DDG of rail and transport were part of the briefing.
The Minister of Transport Barbara Creecy opened the briefing and thanked everyone for attending. She also announced that Transnet Railway Infrastructure Manager (TRIM) completed the process of selecting new train operating companies. These companies are third party companies and according to the minister it will promote economic growth and efficiency. This system in South Africa was approved by cabinet in 2023. The documentation gave the interim rail economic regulatory capacity the mandate to manage consultation on Transnet's draft network statement. Creecy says thereby giving to third party access and enabling private sector participation will increase growth whilst maintaining the State Owned entity.
25 companies have applied and out of those 25 only 11 qualified and will set up a contract with Transnet. The Transnet Rail Infrastructure Manager estimates that the new train operating companies will carry an additional 20 million tons of freight from the 2027 financial year.
Creecy says these processes will take about 10 years and operating companies can commence with operations once the relevant conditions have been addressed. By next week, TRIM will open applications for parties who wish to submit ad hoc applications for additional or new routes.
The minister of transport then handed over to The COO of transport Michelle Phillips who reiterated that there were bids made for the application process, but rather interested parties who went through a number of processes to be part of the application.
She said the applicants who are part of the process Transnet are interested in working with them and this initiative is another ad hoc process.
On September 1st the ad hoc process will commence for the successful candidates. The COO said it is not about bidding, but to reach the 250 million ton target.
In May earlier this year government allocated R51 billion to Transnet and an additional R94.8 billion in July. Although, the ministers have their eyes on the 250 million ton target there are number of constraints that disallow them from reaching the goal with the common constraint being theft and using the funds from government to replace and repair.
Done by: Shaneca Cupido
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