The Department of Transport’s (DOT) freight logistics specialist, Mihlali Gqada said on Thursday that there needs to be a balance in investments in rail and road infrastructure for South Africa.
Gqada was addressing the colloquium on the Freight Road to Rail Migration Plan (FRRMP) and noted that the amount of rail infrastructure investment pales in comparison to road investment.
According to the National Treasury and the Minister of Transport’s Budget Vote Speech for 2023, government has allocated R42.4 billion for road infrastructure for 2024 to 2025.
“Rail infrastructure investment is limited to the allocation for the Passenger Rail Agency of South Africa (Prasa) from the department, while freight rail relies on Transnet investment and competes with Ports and Pipelines. It is therefore imperative that a balance in investment be fostered so that the shift can be realised,” Gqada said.
She noted that the public sector investment has been skewed towards road infrastructure investments.
In the future, there needs to be a wide range of public and private investment tools to finance the construction and operation of rail freight infrastructure, according to Gqada.
“The national freight transportation system requires investment to maintain performance at high levels, upon which the country's economic growth depends,” she added.
Moreover, she noted that the private sector and private investments must find expression in the railway sector.
“These investments must be in the form of infrastructure and operations, as Transnet would not be in a position to meet all the investment required to get the railways competitive and responsive to the country's growth needs and demand.
“Historically, the public and private sectors have collaborated clearly, and both played divided roles in relation to freight transport whereby the public sector has built, owned, and operated transport infrastructure on behalf of government, predominantly railways and highways. Furthermore, the private sector has used that infrastructure to conduct freight operations.
“This division of roles provides opportunities for government to leverage private sector efficiencies and expertise in the construction and operation of freight infrastructure,” Gqada concluded.
CORRUPTION AT TRANSNET
Gqada's comments come on the heels of news that Transnet National Ports Authority CEO is being investigated for corruption.
Earlier this week, Transnet said that it has launched an investigation and has engaged the Special Investigations Unit to investigate Pepi Silinga and his team.
Transnet has also appointed an independent law firm to investigate the reports that are mainly centred on the flouting of procurement processes at the parastatal.
Specifically, Silinga is accused of appointing his former employer, the Coega Development Corporation, to put up fences around the ports of Durban, Richards Bay and Saldanha Bay.
The price for such a job has escalated from R80 million to around R300 million. According to a statement by Transnet, the normal procurement processes have been disregarded.
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