SARIA calls for more creative ways to solve Transnet’s ongoing issues
According to the South African Rail Industry Association (SARIA), there is a need for more creativity when it comes to solving issues in the country. SARIA has issued a clarion call to the stakeholders and government to resuscitate and develop the rail sector, with less emphasis on throwing money at Transnet. This followed Finance Minister
SARIA calls for more creative ways to solve Transnet’s ongoing issues
According to the South African Rail Industry Association (SARIA), there is a need for more creativity when it comes to solving issues in the country.
SARIA has issued a clarion call to the stakeholders and government to resuscitate and develop the rail sector, with less emphasis on throwing money at Transnet.
This followed Finance Minister Enoch Godongwana’s national budget speech where he allocated R351 billion to transport and logistics, but without articulating the directives for state-owned rail assets.
Saria CEO Mesela Nhlapo argues that the rail sector urgently needed a major boost, with a flailing Transnet and Passenger Rail Agency of South Africa (Prasa).
“We are not defining the problem. The reconstruction and recovery plan is something we know… Certain things require creating thinking and making do with what you have. State-owned enterprises have no option, but to partner with the private sector, and that comes with some conditions,” Nhlapho said per IOL.
Saria argues that over the next five years, Transnet had R70bn of debt that was maturing and needed to be refinanced.
In addition, the state-owned rail agency had a R111bn capex requirement of which, Transnet states R80bn was unfunded.
This means that Transnet needs to raise between R150bn and R181bn in the next five years to ensure its stability.
According to Consulting Engineers South Africa’s Chris Campbell CEO, he said: “Implementation, implementation, implementation…It is one thing to allocate funds for infrastructure spending, but it helps no-one if it is not implemented to its fullest in the most value-for-money driven manner!”
He said Cesa agreed with the minister that “infrastructure investments laid the foundation for inclusive and sustainable growth; addresses supply-side constraints; and expands access to basic services”.
Furthermore, the association predicts that Transnet would achieve a maximum of 160 million tonnes of freight moved in the year-ended March 2023 – a 29% drop from the 226 million tonnes moved in 2018.
