Transnet and the Passenger Rail Agency of South Africa (Prasa) will be among the beneficiaries of the R375 billion from the R100bn earmarked for infrastructure development, which includes the expansion of ports, President Cyril Ramaphosa said in his State of the Nation Address on Thursday.
He said the stabilisation of Transnet, which will be accelerated through third-party access, with the finalisation of the Network Statement in December last year.
Ramaphosa said open access to the rail network will allow train operating companies to increase the volume of goods transported by rail, while the network infrastructure remains state-owned. This would ensure that South African minerals, vehicles, and agricultural produce reach international markets, securing jobs and generating revenue for the fiscus.
"Transnet's performance has stabilised and is steadily improving. New cranes and other port equipment are being commissioned to speed up the loading and unloading of cargo and reduce waiting times for ships in our ports. We are on track to implement a new, modern, and transparent mining rights system this year, which will unlock investment in exploration and production. We are revitalising our port terminals and rail corridors through the Freight Logistics Roadmap, leveraging private capital to restore them to world-class standards," Ramaphosa said.
By supporting the agricultural industry, improving the logistics network, enhancing rural supply chains, and opening new export markets, the country could significantly expand its agricultural sector.
"Working with international partners, we are revitalising small harbours, unlocking economic opportunities for coastal communities. Our immediate focus is to enable Eskom, Transnet, and other state-owned enterprises that are vital to our economy to function optimally," he said.
He added that the government was repositioning these entities to provide world-class infrastructure while enabling competition in operations, whether in electricity generation, freight rail, or port terminals.
On Prasa, Ramaphosa said the government would, over the next five years, restore Prasa’s signalling system to ensure that new trains can be fully utilised and that commuters can rely on safe, affordable, and timely transport.
"In making our cities work for their residents, we will restore the remaining passenger rail corridors and stations to full service. More than 80% of passenger rail corridors have been returned to service. Prasa has introduced over 200 modern, locally produced trains on its network to provide a low-cost option for public transport," he said.
Furthermore, an improved rail network would support the establishment of an enabling policy and regulatory framework for critical minerals, which, if beneficiated in the country, could help utilise the wealth beneath the soil for the benefit of the people.
"This represents a fundamental rethink of how the state delivers housing at scale while turning our cities into engines of growth and opportunity," he said.
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