Transnet grants 11 train operating companies access to its rail system

JOHANNESBURG - Transnet’s plan to open its rail network to private operators is gaining traction, with eleven train operating companies granted access to the system.

Out of 25 companies that applied to use state-owned rail infrastructure to transport minerals, eleven have been shortlisted to move forward to the next round of negotiations.

The state currently moves about 160 million tonnes of cargo annually through its rail network, but it requires support from the private sector to handle an additional 90 million tonnes.

Addressing a media briefing in Pretoria on Friday, Transport Minister Barbara Creecy announced that the selected companies would be allocated slots across Transnet’s 41 routes.

"New entrants who have met the requirements will receive conditional award letters outlining award conditions, including the need to complete the Railway Safety Regulator (RSR) permit applications, rolling stock readiness, securing port offloading capacity and other operational processes. Durations of the allocations range from one to 10 years, and operating companies can commence with operations once the relevant conditions have been addressed."