South Africa is predicted to see the introduction of privately operated trains within six to nine months which will benefit the economy, according to James Holley, CEO of Traxtion, Africa’s largest private rail operator.
Key policy frameworks have already been established, including a national rail policy, a freight logistics roadmap, and a private sector participation framework for rail, as stated in a radio interview on Good Morning Cape Town with Lester Kiewit on CapeTalk.
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The country’s rail system, which has been described as ‘dysfunctional’, has negatively affected the economy, even more than rolling blackouts, Holley claimed.
‘It’s having a bigger impact on our economy than the power blackouts had over the last number of years,’ said Holley.
‘If [we’re] looking to ignite the South African economy in the coming years, it’s extremely important that we do continue with this reform agenda,’ he added.
One of the main challenges the national rail system experienced was a reduction in the maintenance expenditure on the Transnet national freight network in 2012 and 2013.
He has also further predicted South Africa will have privately operated trains within the next six to nine months, which he called ‘the start of an investment journey’.
‘We have seen big strides in the past by [the] government by setting the reform agenda of what we need to see in South Africa,’ said Holley.
‘I can say with some confidence that in the next six to nine months you’re gonna see the first private trains operating in South Africa,’ he added.
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