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Transnet turns to private sector

Johannesburg -  Freight and logistics parastatal Transnet has taken a further step towards introducing private sector participants in its rail branch line operations.

"This week, the company formally launched the second phase of its branch lines concessioning process with a call to interested parties for expressions of interest in its branch lines," Transnet said in a statement on Tuesday.

It followed the receipt of 115 registrations of interest at the end of June, to determine the nature and extent of interest in this initiative.

Some of the respondents included several international operators, JSE-listed logistics, transport firms and localised
companies.

Transnet's branch lines comprised 7 278km or 35% of the 20 953km route of the company's rail network. A total of 3 928km was currently operational, the remainder closed.

All of these were feeder lines to the core network, owned and operated by Transnet through its rail freight division, Transnet Freight Rail.

Following board and shareholder approval to begin concessioning both active and inactive branch lines, Transnet had consulted
extensively with parties including organised labour, the transport department and treasury.

Transnet said it understood the private sector might have different approaches to branch line operations.

"Through this process, we aim to share ideas on what it might take to make these lines viable for private operators."

All concessionaires would have to achieve black economic empowerment goals. In addition, branch line staff would not be
transferred to concessionaires, but continue to be employed by the company.
 

 
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