South Africa Shortlists 11 Firms for Freight-Rail Network Access

(Bloomberg) -Now African government has launched 11 private companies to operate in the country’s load rail network and fought with logistics bottlenecks that focused on economic growth.

Transportation Minister Barbara Creecy told journalists in the capital of Pretoria on Friday. and 41 routes and coal, chromium, manganese, fuel and other goods used to carry the other goods will provide access to negotiations. Licenses of the last deduction of up to 10 years will be allocated and will be allowed to start activity after meeting the requirements.

The government has promised to terminate Transnet’s monopoly through the railway system for several years, and in December, the company announced a plan to open it to private companies. The network of 21,232 kilometers (13,193 miles) provided an overview of access conditions and conditions, capacity allocation and pricing. The plan will be reviewed every year.

The Transnet Ray Infrastructure Manager estimates that the selected private operators will carry 20 million tons of load a year from the 2026-27 fiscal year. This means that Transnet should increase its transportation about 70 million tons to meet the target of moving 250 million tons of goods by 2029.

Although the railway infrastructure will remain as a government asset, registering to use private sector expertise more effectively will support its efforts to overcome the logistics system. With years of bad administration, inadequate investment, theft and vandalism, Transnet’s performance constantly deteriorated, and coal and iron ore exports hit the low -time low.

Last year, Transnet said that the investment scale required to increase the railway network was beyond its vehicles and that he needed government support urgently to maintain and stabilize his operations.

Last month, the government approved 94.8 billion Rand ($ 5.37 billion) in the guarantees to support the company; This will be used to ensure that 48.6 billion Rand, in the next five years to address all debt interests. The latest support was in addition to a 51 billion -storey warranty facility approved in May.

Creecy, South Africa’s railway policy in the locomotives and wagons of private operators and both state and private organizations established by the rolling rental companies, he said.

“This may be an important intervention to revive rolling stocks and open 100 billion Rand locks in new investments,” he said.

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