Free the Rail Network

Statement by Dr Chris Hunsinger MP – DA Spokesperson on Transport:

The Democratic Alliance welcomes Cabinet’s approval for the Transnet National Ports Authority (TNPA) to break away from the Transnet group and operate as a standalone entity, as well as its decision to allow TNPA to explore bringing in one of South Africa’s development finance institutions as a minority equity partner.

TNPA is the landlord of eight commercial ports, and its separation from Transnet marks a major structural shift for the country’s logistics network. It finally separates the referee from the player, leading the way for private-sector participation and investment to restore South Africa’s shipping competitiveness.
It will pave the way for private-sector participation and investment to restore our global shipping competitiveness.

The country’s ports hold enormous potential, yet they rank among the worst performing in the world on the World’s Bank Container Port Performance Index.

For years, TNPA has functioned under the Transnet corporate umbrella as one of its primary operating divisions, even though it was originally legislated to operate as an independent landlord over Transnet’s own operational divisions.

President Cyril Ramaphosa first announced the corporatisation of TNPA in 2021. Five years later, it is finally happening. TNPA will now be able to independently reinvest revenue from the ports back into port infrastructure, replacing ageing equipment and expanding port operations.

But the job is only half done. The same conflict remains in freight rail. Transnet still owns the rail network, decides who gets access to it, and then competes for traffic against the private operators it lets on. Private investors will not commit to long-term rail contracts while access is controlled by a competitor.

The DA will submit parliamentary questions to the Minister of Transport on the timeline for the separation. The DA also calls for the valuation and the split of Transnet’s liabilities to be tabled in Parliament.

The ports now have an independent landlord. The rail network must be next.