By Phenyo Selinda
Transnet says it is making “considerable progress” in the implementation of reforms in accordance with the Freight Logistics Roadmap and the Guarantee Framework Conditions issued to Transnet by National Treasury. The reforms include the restructuring of Transnet’s rail business, the corporatisation of the Transnet National Ports Authority (TNPA), and the disposal of the company’s non-core assets.

Transnet Group Chief Executive, Michelle Phillips, emphasised: “These initiatives are a demonstration of Transnet’s commitment to the structural reforms in response to the changes in policy and regulations. In some cases, these changes entail the entry of third parties in the rail and port networks, which is a necessary step to stimulate competition and address long-standing challenges such as underinvestment.”
Rail Reform
Transnet is making headway in its rail reform process. This involves the “vertical separation of Transnet Freight Rail (TFR) into a Rail Operating Company and an Infrastructure Manager”. Transnet has been actively participating in consultations facilitated by the Interim Rail Economic Regulatory Capacity (IRERC) since the publication of the draft railway Network Statement in March 2024.
“Following extensive consultations to align with key stakeholders, the Interim Infrastructure Manager has made the input to the IRERC, and Transnet looks forward to the publication of the final network statement and proposed tariff methodology to open slots for third party access by 30 September 2024,” Transnet stated. The operational models and organisational designs for the Rail Operating Company and Infrastructure Manager are expected to be finalised in the first quarter of 2025.
Non-Core Assets and TNPA
The corporatisation of the TNPA is set to establish the National Ports Authority, which will be wholly owned by Transnet. Efforts are underway to complete the Memorandum of Incorporation and the registration of the National Ports Authority. “The reform will enhance TNPA’s regulatory oversight on terminal operators across its port network. The corporatisation will establish TNPA as a financially autonomous entity capable of generating its own revenue, attract increased investments to improve the efficiency and positioning of SA ports to enhance competitive maritime trade and create appropriate partnerships. It will also, through its independence, enhance terminal licence oversight and align with international standards and regulations governing port authorities and ensure compliance with South African maritime and port regulations,” Transnet explained.
Moreover, the disposal of non-core assets is progressing well. “The disposals will generate cash and reduce holding costs. The Transnet Board of Directors has approved a plan for the disposal of the non-core assets. Transnet will finalise the full list of non-core assets for disposal in the current financial year,” the company said.


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