Rail and freight operator, Transnet said that it has made considerable progress in addressing issues at the state-owned entity.
The company said it was proud of the reforms it had made that were in line with its Freight Logistics Roadmap and felt it had kept up with the Guarantee Framework Conditions imposed by National Treasury.
Transnet has reformed its rail business, specifically noting the corporatisation of the Transnet National Ports Authority (TNPA) and has made inroads with disposing of Transnet’s non-core assets.
“These initiatives are a demonstration of Transnet’s commitment to the structural reforms in response to the changes in policy and regulations,” Michelle Phillips, Transnet Group Chief Executive said.
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,” Phillips added.
Transnet said that it is also calling for 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 for the finalisation of the final Network Statement to open train slots for third-party train operator access,” the company explained.
“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.”
Transnet said that the Rail Operating Company and Infrastructure Manager operating models and organisational designs are expected to be finalised by 2025.
“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,” Transnet explained.
“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.”
On the disposal of its non-core assets, Transnet said that the disposals will generate cash and reduce holding costs.
The company’s directors have approved a plan for the disposal of the non-core assets.
“Transnet will finalise the full list of non-core assets for disposal in the current financial year.”
IOL BUSINESS