The government has introduced a white paper which will inform plans by the department of transport to introduce high-speed rail, allowing the involvement of the private sector in the investment in infrastructure.
The paper also enables state-owned entities to lease their rolling stock to third parties.
On Monday, transport minister Fikile Mbalula gazetted the white paper on national rail policy which seeks to stop the decline of economic activity in the sector, attract investment and allow private companies to run some of the rail line in the coming decades.
The document maps out a way in which the government will ensure that rail is affordable, safe and strengthens economic development by 2050.
The Department of Transport team that worked on the National Rail Policy White Paper.
— ANC SECRETARY GENERAL | Fikile Mbalula (@MbalulaFikile) May 9, 2022
We thank them for their stellar work on the policy. https://t.co/xdG49RupHu pic.twitter.com/pKs445BL8x
Speaking to journalists at the Wolmerton train depot in Pretoria North, Mbalula said by bringing in the private sector, the government wants to unlock investment on rail, improve efficiency and make rail the backbone of SA’s freight logistics and passenger mobility.
“Private sector involvement must not be misconstrued to be privatisation because we do not have such policy. Central to the passenger rail reform is the introduction of high-speed rail into the service mix. We have started this process.
"We are going to make big announcements. The president [Cyril Ramaphosa] made a call a year ago about high-speed rail. Plans are afoot in relation to this; as you know, we have to embark on research and then have partners that we will work with,” Mbalula said.
Mbalula said state-owned entities such as the Passenger Rail Agency of SA (Prasa) and Transnet will be allowed to lease some of their infrastructure to the private sector for use.
Rail infrastructure has been on the decline over the past few years with less investment made by the government. During the Covid-19 lockdown, commuter rail was the target of vandalism as thieves stole cables and destroyed railway lines and stations, forcing Prasa to shut down some of the corridors after the lifting of Covid-19 lockdown regulations.
Deputy director-general of rail transport in the department, Ngwako Makaepea, said private sector companies will be able to run commuter trains on behalf of Prasa. “Private sector can come with their trains and use infrastructure of government.
"Another model is the private sector coming in and assisting Prasa to run trains. They are coming with their skills in terms of engineering and operations and Prasa will pay them a fee. That will not change the payment model [ticket fares for commuters],” Makaepea said.
He said companies in sectors such as agriculture and mining will also be able to run rail lines that will help boost different sectors of the economy.











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