Transnet’s Network Statement: a rail revolution!

The Multi-Modal Inland Port Association (MIPA) has welcomed Transnet’s release of its Network Statement, a key milestone in opening South Africa’s rail network to private operators at an affordable cost.

Approved in December 2024 by Minister of Transport Barbara Creecy, this initiative provides a structured framework for private sector involvement in the rail industry, which is expected to revolutionise freight logistics in the country.

The Network Statement outlines the terms and conditions for accessing the national rail infrastructure, detailing access criteria, capacity allocation, and pricing structures. It is a key step in implementing the National Rail Policy White Paper and the Freight Logistics Roadmap, both of which position rail as the backbone of South Africa’s transport system.

Transforming freight logistics

Minister Creecy described the initiative as a critical step towards shifting 250 million tonnes of freight per year onto rail over the next five years. Warwick Lord, chairperson of MIPA, sees this as a major boost for the industry.

“The release of the Network Statement is a transformative moment for South Africa’s logistics sector. It provides the clarity and certainty needed for private investment in rail operations, which will help us achieve the government’s ambitious freight targets. This is a significant step forward in creating a more efficient, sustainable, and competitive transport system,” he says.

The Network Statement was developed through extensive consultations with Transnet, key industry players, and the Interim Rail Economic Regulator. It offers a comprehensive view of the freight rail network, highlighting key corridors, infrastructure, and services. A differentiated tariff system has been introduced to ensure fair and transparent access for third-party operators, allowing them to plan services effectively and invest in rolling stock with confidence.

Private sector optimism and challenges

For private operators, the opening of the rail network presents significant opportunities. MIPA member Mike Daniel, managing director of RailRunner South Africa, emphasises the importance of this development. “With the Network Statement now in place, we can accelerate the deployment of our innovative road-to-rail solutions,” he says.

RailRunner’s lightweight, energy-efficient wagons require fewer locomotives and are well suited to the new tariff system. This could provide a more sustainable alternative to traditional freight transport, working alongside road networks to create a balanced, intermodal logistics system.

However, Daniel also acknowledges the challenges ahead that could slow progress. “This service offering rollout will not be smooth sailing from the get-go because of the legacy issues of security and signalling. However, we remain optimistic that the ‘Rainbow Nation’ will rise above these problems by deploying innovative solutions, such as Terminal Anywhere and others,” he elaborates.

A road-to-rail shift in the making

MIPA represents six major inland ports in South Africa and one in Namibia, and is committed to facilitating the shift from road to rail. Its members are actively investing in intermodal transfer facilities to enhance efficiency, technology-driven logistics solutions to streamline supply chains, and secure freight corridors to ensure reliability and safety.

These initiatives align with government objectives to reduce road congestion, enhance transport safety, and cut carbon emissions.

Public-private collaborations

The success of the Network Statement will largely depend on effective public-private partnerships. MIPA members are working closely with Transnet Rail Infrastructure Manager (TRIM) to facilitate smooth integration of private operators into the rail network. Key focus areas include addressing bottlenecks at ports and along major rail corridors, encouraging investment in rail infrastructure, and improving service levels to meet cargo owner and logistics provider demands.

Future rail prospects

Lord remains confident about the future, stressing the importance of continued collaboration between government, industry, and private investors. “The publication of the Network Statement is a significant step towards realising the vision of a modern, efficient, and sustainable rail system in South Africa,” he says. “MIPA and its members are committed to working with all stakeholders to ensure the success of this initiative, which promises to unlock new opportunities for economic growth, job creation, and environmental sustainability. There is no doubt that road and rail transport are interdependent and must work together seamlessly to ensure efficient and sustainable transportation.”