Transport Minister Fikile Mbalula says the country’s new rail policy will open up the industry to other players and examine structural reforms to bring about competitiveness.
Mbalula is addressing dozens of transport business leaders and government officials in Kempton Park, east of Johannesburg, where the department is launching the national rail policy.
It also seeks to establish commuter and freight rail as the backbone of the country’s transport system.
The policy document lists the challenges faced by rail over the years leading to its low market share of less than 20% and less than 10% for freight and passengers, respectively.
Mbalula explains some of the issues the policy seeks to address, ”The policy addresses passenger rail capacity challenges, where concessioning is introduced on other lines other than those run by PRASA – where private sector can operate their services. This means that alternative provisions for commuter rail in terms of mobility, funding, and competitiveness of commuter rail systems is catered for. The white paper presents a multi-decade of how the railway sector will evolve over time.’’
Cabinet approved the white paper on the rail policy in March this year.
-EWN
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