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Protecting the future of South African rail network requires private participation
Protecting the future of South African rail network requires private participation

Zawya

time08-07-2025

  • Business
  • Zawya

Protecting the future of South African rail network requires private participation

South Africa's freight rail network is under strain, yet it remains one of the country's greatest opportunities for economic renewal and industrial growth. For investors, freight users, and logistics specialists, this is a chance to help rebuild a critical national asset while unlocking long-term value in a sector essential to the country's recovery. Source: jplenio1 via Freepik On the Northern Corridor alone, the coal artery to Richards Bay, Transnet estimates R13bn is needed for critical maintenance. That's 10% of its entire debt book. And in just the next fiscal year, R2bn is required to restore even basic functionality. Transnet cannot fund this rehabilitation. Its five-year capital requirement is estimated at around R65bn, money it doesn't have. To support this, the government in May approved a R51bn guarantee facility: R41 billion to meet Transnet's funding needs over the next two years, and R10bn for liquidity support. This comes barely 18 months after a previous R47bn guarantee, underscoring how desperate the situation is. With Transnet struggling and the government under pressure, it was clear that something needed to change. Transnet and the Department of Transport have finally acknowledged that they cannot fix the system alone, and are calling for co-investment and co-operation. This is a major shift. Opening the doors to private sector participation not only aims to revitalise the rail network, restoring export capacity, but also provides the opportunity to revive mining communities, attract investment, and enhance national competitiveness. Private sector participation In March 2025, Transnet issued a Request for Information (RFI) to gauge private sector interest in freight rail and port logistics. Three priority corridors are up for revival: • Coal to Richards Bay • Iron ore to Saldanha • Container traffic to Durban An accompanying Request for Proposal (RFP) is due later this year with additional RFIs, including for manganese and passenger rail corridors, on the horizon. For the mining sector and freight operators, the imperative to engage is both strategic and financial. Involvement in the rail network and operations isn't just about moving goods. It's about de-risking operations, ensuring cost efficiency, and unlocking long-term returns through access to mission-critical infrastructure. The government has made clear that while the state will retain ownership of the rail network, operational control and financial input can be shared. To do so, there are various participation models, from track upgrades and terminal development to end-to-end corridor management. While the private sector could participate piecemeal in select parts of the rail network, we believe infrastructure rehabilitation must be approached as a whole. Fragmented efforts won't deliver the operational continuity, safety, and efficiency required; only a corridor-wide view can. Some stakeholders may choose to invest; others may wish to operate. What matters is alignment. Alignment of participants who can bring capital, capability and/or execution strengths to the table. No single entity can take on this scale of work alone, but the potential is already clear. During the RFI portal's open period, between 24 March and 9 May, the site drew 11,000 visits and generated 163 official responses to the RFI, the transport ministry revealed. The most effective influence will come from consortiums, blending the resources of miners, funders, original equipment manufacturers (OEMs), and logistics experts. Each must contribute more than just money. Deep expertise and delivery capacity will be critical. This all has to be collaborative. This is echoed by the industry players, who have made it clear that if they are to participate, there needs to be a fundamental mindset change. They want a say in how the railway line is funded, managed, and maintained. Without this level of system-wide influence, private players lack the investment security they desire, making participation far less attractive. The mining industry is not primarily motivated by financial gain from logistics operations; it wants predictability, efficiency, and transparency, which are all qualities currently in short supply. For freight users, the prize is a network that works: one that moves product efficiently to port, reduces reliance on road freight, and supports long-term growth. This is not just about trains. It's about national recovery. Decisions made over the next year will determine whether South Africa can restore lost export volumes, revive its mining heartlands, and reassert its economic potential. The forthcoming RFP is more than a procurement exercise; it's an opportunity to shape the future. The mining industry, investors and operators need to prepare now: understand the policy environment, assess the corridors, and consider where their strategic interests align. For the private sector, the moment to step in is now. Not to take over, but to build together. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (

Homeless get more than warmth at shelter
Homeless get more than warmth at shelter

The Citizen

time25-06-2025

  • General
  • The Citizen

Homeless get more than warmth at shelter

Blankets were donated to 157 beneficiaries who also received soup servings at homeless hotspots in the CBD. The Gauteng Department of Social Development (DSD) (Northern Corridor), Tshwane metro, and Tshwane Homelessness Forum (THF), recently held their Homeless Winter Warmer Campaign at the Kitso Lesedi Community Development (KLCD) men's shelter in Arcadia. KLCD founder and CEO, Maki Tselapedi, said the campaign came to fruition after beneficiaries voiced their concerns about staying warm during winter. 'It's very cold and our people were complaining about it, so we pleaded with our regional DSD, and we're grateful that they heard us. They are looking for jobs and we are looking for another house for them because we are overflowing and we're talking to the city about that,' Tselapedi said. She added that the NGO is looking forward to continuing the running of its programmes. One of these is family reunification, an initiative that seeks to reconnect beneficiaries with their lost loved ones as well as prepare them for the working world. She invited beneficiaries to air out their grievances during the session attended by KLCD, the Tshwane Metro, DSD officials, other NGOs and organisations. KLCD chairperson Dr Refiloe Mabaso said the NGO had undergone hard times recently and credits strong faith, good management, and the beneficiaries for getting past them. 'There's an old saying which goes: 'When you want to walk fast, do it alone, when you want to do more, do it collectively'. So this is a collective effort from the DSD, Tshwane, fellow NGOs, staff members, and the beneficiaries. None of this would be possible if we didn't work together. It's not about us, it's about our beneficiaries, so let's get out there and help, instead of sitting around making speeches,' Mabaso said. Remembrance Mokoena of the University of Pretoria's (UP) Faculty of Theology and Religion and the Pathways Out of Homelessness programme, spoke about the upcoming homeless count the institution and other partners hope to carry out soon. 'We understand the value of bringing data. We understand the value that we add; we're not just an institution looking to gain degrees and medals. I am a professional social worker, so I'm not interested in putting another degree on the wall; I am interested in improving the lives of our people.' Mokoena said the first count in Tshwane was in 2022, and they plan to do one every year. 'We're not just counting to say there are 20 homeless people. We need to present the trials they are facing, how their mental health is, and the resources and interventions they need.' She said they intend to conduct a pilot run by the end of July and then test their methodology, and by the end of October, they aim to conduct a full count of all seven regions. Social work manager from the DSD's Northern Corridor's Homeless Programme, Joyce Buthelezi, said the day came about as there was a need expressed by KLCD. 'As the department, we saw it fit that for this 2025/26 financial year, let us heed the call made by our NGOs. The purpose of our being here is to make sure that the blankets are given to the most vulnerable who are in need,' Buthelezi said. Two beneficiaries gave their testimonials on how the shelter has assisted them in getting their lives back on track. Mochidi Matthews Mailula said that after graduating from the Tshwane University of Technology (TUT) in Operations Management, his life took an unexpected turn: he became homeless and wandered the streets of the city. 'It was the most difficult time of my life. Then a light shined in the darkness, called the Kitso Lesedi Homeless Shelter, located here in Arcadia. It became my place of hope. I'll never forget the warm welcome I received from social workers who introduced me to life here.' Mailula said the shelter provided him with accommodation, 'making sure I had a safe place to sleep and rest. They gave me regular meals, cared for my health and ensured I stayed clean but above all, it gave me back my humanity, confidence and sense of purpose'. Seboeng Stoffel, another beneficiary, said that before Kitso Lesedi, his life was not going well, he was struggling with substance abuse, and he had no idea where the next meal would come from. 'Before we came here, life wasn't easy, we were sleeping on the streets. I met one of the social workers in Sunnyside one day who told me about this place and I decided to stop by. We wandered the streets without food, we didn't even have IDs, but since we came here, we've been helped a lot. Even today I'm working, so I'm grateful. Stoffel said sessions like Drug and Substance and Family Reunification have helped a lot, because they connected him with his family. Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

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