TRANSNET has announced the creation of an interim infrastructure manager as it moves to open up its network to third-party freight operators with effect from April 1 2024.
Under the South African government’s national rail policy, radical structural reform is being undertaken in the rail sector that is intended to facilitate private-sector investment and optimal use of the network.
This will include the eventual creation of the Transnet Rail Infrastructure Manager (TRIM), subject to the passage of the Economic Regulation of Transport (ERT) Bill that is currently before parliament.
To ensure fair and open access to the network and that rail infrastructure is properly maintained, the reform programme also includes the creation of a Transport Economic Regulator (TER).
Due to be established shortly, the TER will set prices for train paths, regulate the access regime, enforce compliance through a system of penalties and provide resolution for disputes between operators and the infrastructure manager.
These operators will include the current incumbent, restructured as Transnet Freight Rail Operating Company (TFROC), which will also be responsible for yard operations and train safety, as well as rolling stock ownership and management.
According to Transnet, the key commercial objectives of the infrastructure manager include maximising network utilisation, increasing network density, and generating revenue through track access charges that will fund infrastructure maintenance.
It will also be responsible for rehabilitating and expanding the rail network, while increasing rail market share by facilitating modal shift from road.
The government will allocate funding to the infrastructure manager for investment to improve network availability and reliability for freight operations throughout South Africa. Track access charges will go towards covering operating costs.
Pending the ERT Bill entering law, the interim infrastructure will engage with the Interim Rail Economic Regulator Capacity (IRERC) and manage access until a permanent structure is in place.
Transnet will now consult with IRERC, the Department of Public Enterprises, the Department of Transport and other stakeholders on a draft network statement, draft access agreement and proposed tariff methodology.
The interim infrastructure manager will publish the final draft network statement, conditions of access and the access tariff on April 1 2024, enabling third-party freight operators to apply for train paths.
Provided that all the necessary conditions and approvals are met, and that the requested paths are not being used by TFROC, Transnet says that paths will be provided by May 2024.
