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Approval Granted for Publication of Freight Logistics Roadmap
The Freight Logistics Roadmap, designed to address critical challenges in the industry, has received Cabinet approval for publication. According to SANews, the roadmap tackles severe truck congestion challenges at Transnet’s Richard’s Bay port, aimed at long-term logistics system reform. Transnet, the government-owned freight rail, ports, and logistics company, has been actively working to resolve these issues, including increasing the number of available locomotives.
Minister in the Presidency Khumbudzo Ntshavheni highlighted the industry’s significant constraints on the South African economy, growth prospects, and job creation. Stabilising and improving the operational performance of the freight rail network is an immediate priority, with short-term interventions focusing on five corridors aligned with Transnet’s approved turnaround plan.
Also read: Resignations of Transnet GCE and CFO Announced
The Freight Logistics Roadmap outlines three key areas of intervention:
- Operations and rolling stock improvements, including returning long-standing locomotives to service through agreements with Original Equipment Manufacturers (OEMs) and ensuring a supply of spares.
- Security and safety of the rail network through collaboration with law enforcement agencies.
- A capital investment program for expansion plans and sustaining operations.
The roadmap also details the implementation of commitments in the National Rail Policy and the National Commercial Ports Policy, along with plans for reforming the freight logistics system.
Simultaneously, Cabinet approval for the Draft Rail Private Sector Participation (PSP) Framework has been granted. The framework aims to provide an interim approach and model for future decision-making to enable private sector participation in the railway infrastructure system. It proposes private sector participation to fix railway infrastructure challenges, ensuring compliance with the PFMA and Company’s Act.
The Department of Transport will establish a PSP unit to identify and prioritise projects and develop an implementation plan for facilitating PSP initiatives.
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