The Transnet Network Statement initiative is a key milestone in the implementation of the National Rail Policy White Paper and the Freight Logistics Roadmap, which aim to position rail as the backbone of South Africa’s transport system. Picture: Supplied
The Black Business Council (BBC) has successfully advocated for a crucial amendment to Transnet's recently published Network Statement.
The Transnet Network Statement outlines the terms and conditions for access to the national rail infrastructure by private sector players, including access conditions, capacity allocation and pricing structures.
This initiative is a key milestone in the implementation of the National Rail Policy White Paper and the Freight Logistics Roadmap, which aim to position rail as the backbone of South Africa’s transport system.
The document, originally issued in December, has been called into question due to the exclusion of black empowerment initiatives, leading to widespread concerns that Transnet’s rehabilitation efforts would disproportionately favour established, predominantly white businesses.
The BBC’s insistence on including black empowerment provisions is a pivotal move in the ongoing struggle for equity and transformation within South Africa’s transport sector.
Kganti Matabane, CEO of the BBC, expressed his dismay regarding the original omission, highlighting a troubling trend in the country's post-apartheid landscape.
“We were not surprised that black empowerment was excluded. We were not surprised at all, just dismayed with the realisation that after 31 years of democracy, black empowerment is only just a tick box exercise to amass points, Transnet is a public entity,” Matabane said in an interview.
In its objections following the December 2024 meeting, the BBC said it had found on review of the Final Network Statement that no provision had been made for empowerment and transformation requirements, and that this had been instead deferred to a future network statement.
“The BBC abhors the relegation of transformation in the rail sector to absolute oblivion and the complete disregard of the country's transformation policies,” it had said, noting that the document had purposely by-passed black business.
“The document is rather designed to maintain the status quo and to further entrench the dominance of white owned train operating companies. The impression you gave us during our meeting on December 18th is that the B-BBEE requirements would be incorporated into the Final Network Statement, evidently that is not the case.”
The discussion surrounding black economic empowerment is particularly poignant given the backdrop of the recent remarks from former Minister of Transport, Sindisiwe Chikunga, who tasked the newly established B-BBEE Transport Sector Council with ensuring economic justice in the transport sector.
Despite these lofty goals, the BBC pointed to a significant lack of progress in integrating historically disadvantaged demographics into the nation’s transport economic infrastructure.
In exclusive communication, the Department of Transport’s deputy director-general for rail, Ngwako Makaepea, conceded that the manner in which the statement that deals with critical issues of B-BBEE and transformation had been captured may have led to the misinterpretation of government’s intentions.
“The Department has therefore resolved to correct this matter through an amendment of the Network Statement where an Addendum would be inserted in that regard,” Makaepea said.
“We are also willing to engage further with yourself in these imperative issues to explain the approach that was taken in the final write-up in the Network Statement.”
Industry insiders have highlighted that the earlier oversight may stem from hurried implementation processes that failed to adequately involve the necessary economic regulatory bodies.
Concerns about infrastructure readiness were raised, with one shareholder questioning how private sector investment could be justified with insufficient rail infrastructure.
“How do you bring in the private sector when the infrastructure is not in an acceptable state and over and above that you say tough luck and you will still not give them money. How does the private sector invest in locomotives and rolling stock if the infrastructure is not ready?” an industry shareholder said of the document.
Matabane said the BBC would not satisfy itself with only the inclusion but would ensure there was black participation in the implementation of the paper.
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