Will Railway Privatisation Work in South Africa?
With railway being one of the most accessed modes of transport in South Africa, the mass majority rely on this as their go-to primary mode of transportation.
Although over the years the public sector’s attempt to maintain the public transport industry, mainly the railway, has been unsuccessful. Nonetheless, we recognize the utility of railway, thus the potential for privatisation remains on the table.
Recent privatisation endeavours in the international arena confirm that restructuring a state-owned rail utility is a prerequisite for private sector participation in rail operations.
How will privatisation make the railway sector better?
There is little merit in discussing rail privatisation in South Africa if it is the government’s intention to keep the country’s entire rail system in public ownership.
However, there appears to be some political will to allow for limited private sector participation in the rail industry.
This shift will allow private enterprises to intervene in the public sector’s effort to sustain the railway industry and take it upon themselves to supply their own innovative resources to run these public entities efficiently.
Conclusion
At this stage rail infrastructure and other fixed assets on many of the low-density lines under the Spoornet administration continue to deteriorate due to years of neglect, deferred maintenance and zero capital investment.
It is crucial that those lines with commercial potential be offered to private entrepreneurs while their basic facilities are still intact.
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Other sources:
https://www.engineeringnews.co.za/article/urgent-privatisation-of-south-african-rail-network-is-called-for-2022-07-11/rep_id:4136
https://www.engineeringnews.co.za/article/prasa-working-to-restore-three-gauteng-rail-corridors-before-year-end-2022-07-21
