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    Home » Rail industry body calls for independence
    ECONOMY

    Rail industry body calls for independence

    August 17, 2023
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    Mesela Kope-Nhlapo
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    The African Rail Industry Association (ARIA) warns that the appointment of an independent and impartial infrastructure manager (IM) is crucial for the revitalization of South Africa’s freight rail future.

    1. ARIA CEO Mesela Kope-Nhlapo expresses concern that if Transnet Freight Rail (TFR) creates the IM position as part of TFR, it goes against the spirit and intent of the National Rail Policy.
    2. According to the National Rail Policy, there should be a separation between infrastructure and train operations to enable third-party access across the rail network.
    3. Kope-Nhlapo emphasizes the importance of independent and well-funded infrastructure managers to attract private sector investment and ensure equitable private sector participation.
    4. Private sector investment in rail infrastructure is vital for development, meaningful reform, and the contribution of freight rail transportation to South Africa’s supply chains, GDP, and employment.
    5. The decline of TFR and the Passenger Rail Agency of South Africa (PRASA) has severely impacted South Africa’s rail ecosystem, making the appointment of an independent IM urgent.
    6. The revitalization of the freight rail network is dependent on the appointment of an independent IM, as it will facilitate private sector investment in the sector.
    7. ARIA believes that several principles are critical to the rail reform process, including establishing interoperability, ensuring the independence of the IM function, promoting fair and equitable access to all operators, and enforcing compliance and safety standards.
    8. The future single transport economic regulator will enforce compliance through transparent management of tariff and penalty regimes.
    9. Infrastructure managers must meet and maintain safe operating standards as regulated by the Rail Safety Regulator.
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