By Lehlohonolo Lehana.
State-owned Freight Logistics group Transnet says it is making “progress” in the implementation of reforms in accordance with the Freight Logistics Roadmap and the Guarantee Framework Conditions issued by National Treasury.
The reforms include the reform of Transnet’s rail business, corporatisation of the Transnet National Ports Authority (TNPA) and the disposal of the company’s non-core assets.
In an update on the institutional reforms being undertaken in line with the Freight Logistics Roadmap and the National Treasury’s guarantee framework conditions, Transnet Group Chief Executive, Michelle Phillips, said: “These initiatives are a demonstration of Transnet’s commitment to the structural reforms in response to the changes in policy and regulations. In some cases, these changes entail entry of third parties in the rail and port networks, which is a necessary step to stimulate competition and address long-standing challenges such as underinvestment.”
This includes what the company calls the “vertical separation of Transnet Freight Rail (TFR) into a Rail Operating Company and an Infrastructure Manager”.
“Since the publication of the draft railway Network Statement in March 2024, Transnet actively participated in a consultation process facilitated by the Interim Rail Economic Regulatory Capacity (IRERC). This was in preparation of the finalisation of the final Network Statement to open train slots for third party train operator access.
“Following extensive consultations to align with key stakeholders, the Interim Infrastructure Manager has made the input to the IRERC, and Transnet looks forward to the publication of the final network statement and proposed tariff methodology to open slots for third party access by 30 September 2024,” Phillips said.
She further explained that the Rail Operating Company and Infrastructure Manager operating models, and organisational designs are expected to be finalised in the first quarter of 2025.
The corporatisation of the TNPA is expected to culminate in the establishment of the National Ports Authority, which will be wholly owned by Transnet.
Work is underway to complete the Memorandum of Incorporation and the Registration of the National Ports Authority.
“The reform will enhance TNPA’s regulatory oversight on terminal operators across its port network. The corporatisation will establish TNPA as a financially autonomous entity capable of generating its own revenue, attract increased investments to improve the efficiency and positioning of SA ports to enhance competitive maritime trade and create appropriate partnerships.
“It will also, through its independence, enhance terminal licence oversight and align with international standards and regulations governing port authorities and ensure compliance with South African maritime and port regulations,” She explained.