It remains to be seen if private players can fix infrastructure woes
19 October 2023 - 15:38
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A road map for the Freight Logistics System aims to provide preferential service and rates for those private sector companies that “provide finance for maintenance and infrastructure upgrades” (“Clarity on business role in Transnet”, October 17).
This could be the kind of approach needed to unlock private participation in the operational side of the country’s ailing, decrepit railway network. But the risk lies with the caveat that is ownership of infrastructure.
Private players will be invited to invest in and operate on the railways — but for all their time and capital investments, will Transnet ultimately still remain the custodian with whom fundamental power and control rests?
The appeal of preferential service and rates could well be enough to entice private players. Whether this will be enough to see improvements in terms of reliability and performance remains to be seen.
Various government departments will remain in charge of Transnet’s decisions and operations — not least of these, the department of public enterprises. Up to now there is little reason to believe that continued centralised control and interferencewill not remain the order of the day.
Chris Hattingh Centre for Risk Analysis
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Centralised control not the way to go
It remains to be seen if private players can fix infrastructure woes
A road map for the Freight Logistics System aims to provide preferential service and rates for those private sector companies that “provide finance for maintenance and infrastructure upgrades” (“Clarity on business role in Transnet”, October 17).
This could be the kind of approach needed to unlock private participation in the operational side of the country’s ailing, decrepit railway network. But the risk lies with the caveat that is ownership of infrastructure.
Private players will be invited to invest in and operate on the railways — but for all their time and capital investments, will Transnet ultimately still remain the custodian with whom fundamental power and control rests?
The appeal of preferential service and rates could well be enough to entice private players. Whether this will be enough to see improvements in terms of reliability and performance remains to be seen.
Various government departments will remain in charge of Transnet’s decisions and operations — not least of these, the department of public enterprises. Up to now there is little reason to believe that continued centralised control and interference will not remain the order of the day.
Chris Hattingh
Centre for Risk Analysis
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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