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Daily Maverick
4 days ago
- Business
- Daily Maverick
Creecy's new Rail Bill promises reform measured in six key numbers
South Africa's logistics infrastructure is under construction and Transport Minister Barbara Creecy has laid out an overhaul plan with six hard numbers and a new Rail Bill. In a rare moment of relatability from the GNU member with the most 'tannie energy', Barbara Creecy said that being transport minister is the worst and best job she's had. 'The best because there's so much to contribute, the worst because there are lots of things that are wrong, and fixing them is very complicated.' 'Complicated' is generous. The logistics bottlenecks in South Africa's rail infrastructure are bleeding billions per day from the economy. But Creecy said her department is moving to tackle the mess with a soon-to-be tabled bill and what she describes as 'overwhelming appetite' from the private sector. Six numbers to shape a sector The minister's 'six numbers' sit at the centre of her department's overhaul masterplan: Ambitious targets, however, don't build tracks. What's needed is a structure to support them. Laying down the law A first-of-its-kind Rail Bill is set to be introduced later this year, according to Creecy, in an effort to move rail reform into legislation. 'This bill aims to legislate reforms intended to transform the freight and passenger rail sectors,' the Department of Transport told Daily Maverick. 'The department believes that this Rail Bill will offer legal clarity regarding future policy directions.' Creecy stressed that the underlying infrastructure will remain in state hands, managed by the Transnet Infrastructure Manager. Private sector appetite The Department of Transport issued a Request for Information (RFI) in March this year – 162 submissions were brought, along with 11,600 visits to the site, which signalled interest across major freight corridors, especially that of ports, Creecy said. 'It's going to mean that future proposals will be responsive,' she said. 'We have seen situations where proposals that have been put out by state-owned entities have not been appetising to the market.' Some companies have already approached the department with funding offers for urgent fixes, Creecy detailed. In the meantime, Transnet has launched funding requests with National Treasury's Budget Facility for Infrastructure for short-term, urgent repairs and long-term revitalisation. How does this affect you? If the transformation goes to plan: Cheaper goods if logistics costs come down Job creation through infrastructure development and manufacturing Reliable exports and better trade performance Less road congestion and more efficient freight If not: Lower tax revenue and reduced income for operational entities Shrinking global logistics share could trigger job losses Freight and port processing costs will continue to rise Higher product prices will cut consumer spending and access Can the state afford it? According to Creecy, the state needs to be investing about R15-billion to R20-billion a year to have the network functioning effectively. 'It is plausible,' said transport economist Dr Johann van Rensburg, but only if this number also takes into account maintenance and future upgrades. Council for Scientific and Industrial Research transport economist Shaun Mhlanga also believes this investment to be possible, pointing to hybrid models that blend government guarantees, private investment and multilateral funding. Mhlanga added that the recent approval of a R51-billion government guarantee and the African Development Bank's R18.8-billion loan to Transnet, show that this is feasible. Dr Alex Malapane, an independent economic analyst, says this estimate is 'fiscally unrealistic, yet politically seductive'. With debt service costs exceeding R380-billion annually, Malapane argues that relying on the public purse alone would be irresponsible. 'True reform means handing over operational control. Anything less continues the cycle of underdelivery and overpromising.' Weak bones, long returns The transformation plan stems from an unavoidable reality: the network is ancient. 'Our existing network has not been developed since the 1970s, with the exception of the Gautrain,' Creecy said, adding that the country still uses narrow-gauge tracks and outdated control systems. The return on this investment won't come quickly. Mhlanga estimates five to 15 years for most major upgrades to show results. Malapane confirmed this, but said that it's not a cause for delaying action. 'Reducing turnaround times at Durban port or unblocking key freight corridors would improve export volumes in under 36 months. The idea that infrastructure only pays off in the long term ignores the multiplier effect that high-impact upgrades can have,' he said. Van Rensburg said the payoff begins the moment new infrastructure opens. If the infrastructure is in better condition, maintenance costs drop, operational efficiency rises and user costs fall, but only if the benefits of the upgrades are not inflated, he said. Transnet's reinvention by necessity Transnet's debt structure is a major concern, according to Creecy, and is thus being restructured into a state-owned infrastructure provider. Private operators will be able to run trains on key routes, pay access fees and offer niche services, such as agricultural and tourism lines. Creecy acknowledges that although South Africa is about 20 years behind the curve, we can learn from the mistakes of other countries with more advanced systems.
Cision Canada
12-06-2025
- Business
- Cision Canada
STATEMENT - National Coordinators advance work on Icebreaker Collaboration Effort Français
Representatives from Canada, Finland and the United States met to discuss the next steps in the collaboration to build Arctic and polar icebreakers OTTAWA, ON, June 12, 2025 /CNW/ - The National Coordinators of the Icebreaker Collaboration Effort (ICE Pact) and other officials from the governments of Canada, Finland and the United States (U.S.) have successfully concluded a 2-day meeting to discuss their shared commitment to strengthening Arctic presence and icebreaking capabilities through the ICE Pact. During the discussions, delegates from Canada, Finland and the U.S. successfully advanced deliverables under the ICE Pact workplan by focusing on the 4 areas of work: technical expertise and information exchange, workforce development, relations with allies and industry, and research and development. The 3 countries each presented their initial review and analysis of their Request for Information, which collected industry views and recommendations within their respective markets. This will help in engaging with interested shipyards and supply chains, and in laying the groundwork for future involvement with the private sector. The delegates also participated in a panel discussion and roundtable with Canadian industry, academia and think tank representatives, hosted by the Canadian Global Affairs Institute. The event was an important forum to discuss the purpose and potential of the ICE Pact and identify opportunities for industrial collaboration. Participants shared valuable insights into the national perspectives on the ICE Pact and Arctic collaboration, promoting trilateral cooperation and strengthening stakeholder support for ICE Pact activities. The 3 partner countries concluded a successful meeting with a strong commitment to continue the ICE Pact work. They agreed to meet again in-person in fall 2025. The U.S. will host the next meeting.
IOL News
26-05-2025
- Business
- IOL News
Transnet gets R51 billion government guarantee boost to continue with recovery plan
Minister of Transport Barbara Creecy has this week approved a R51 billion guarantee facility for Transnet. The State-owned freight and logistics group plays a central role in the South African economy and the government's goal of inclusive growth. Image: Supplied Minister of Transport Barbara Creecy has approved a R51 billion guarantee facility for Transnet, effective immediately, in a bid to bolster the State-owned freight and logistics group. This financial backing, which was granted with the concurrence of the Minister of Finance, aims to support Transnet's vital capital investment programme and assist the entity in meeting its debt obligations amidst ongoing reforms. Transnet's significance cannot be understated; it serves as a cornerstone of the South African economy, playing a critical role in facilitating the government's goal of inclusive growth. Currently, Transnet is undergoing a comprehensive reform programme designed to enhance its operational performance as it strives to address longstanding financial, operational, and governance challenges that have impeded its ability to deliver on its strategic mandate. As part of its trajectory towards improvement, Transnet reported a successful record of transporting the equivalent of 161 million tons of freight on its rail network by March 2025. Notably, the entity had also released its 2024/25 Network Statement by December 2024, which introduces private sector operators into the freight rail domain. Anticipation builds as announcements of the first successful bidders are expected to be made by the end of July. In a continued effort to promote private investment, the Department of Transport issued a Request for Information (RFI) earlier this year for private investors focusing on five pivotal freight corridors and associated ports. With the deadline for the RFI closing on 31 May, the department said Transnet was on track to issue Requests for Proposals by September, aiming to attract further capital while maintaining State ownership of the network. To navigate immediate capital investment needs, Transnet has introduced project-based applications to the Budget Facility for Infrastructure. Additionally, collaboration is underway with National Treasury and the Presidency to formulate a joint funding policy aimed at facilitating swift capital improvements through private sector involvement in priority freight corridors. The decision to grant this crucial guarantee facility resulted from ongoing discussions between National Treasury and the Department of Transport, recognising the progress Transnet has made. The financial package, amounting to R41bn, is set to address the entity's funding requirements across the 2025/26 and 2026/27 financial years, complemented by a R10bn guarantee specifically allocated for liquidity management, focusing on the servicing of maturing debt and related capital investments. This marks a continuation of support initiated in December 2023, when a R47bn guarantee support facility was announced, enabling Transnet to implement its Recovery Plan for the fiscal years 2023/24 and 2024/25. This plan has been pivotal in galvanising increased capital investments and enhancing liquidity for the entity. A Guarantee Framework Agreement will formalise the responsibilities between the Department of Transport and National Treasury, establishing reviewable conditions for the guarantees. According to the department, any drawdowns by Transnet will be contingent on compliance with these conditions, which will centre on operational requirements and reforms in the logistics sector. Creecy expressed her confidence that the additional financial support provided to Transnet will catalyse further improvements in operations and accelerate the reforms laid out in the Freight Logistics Roadmap. She said this bold move was seen as a significant step towards fostering a more efficient and robust infrastructure for South Africa's freight and logistics industry. Meanwhile, Transnet welcomed the government guarantee facility to support its sustainability and long-term growth. Transnet said the facility will enable it to refinance maturing debt and ensure the organisation's continued access to adequate resources and facilities to be able to continue its operations as well as fund the capital investment programme for the foreseeable future. "It will also enable Transnet to focus on operational improvements and strategic reforms. In line with existing Guarantee Framework Conditions, Transnet has made significant strides in implementing rail and port reforms. In pursuit of enhanced partnership and collaboration, several key Private Sector Participation (PSP) transactions are being implemented," Transnet said in a statement. "PSPs are a key element of the organisation's strategy to modernise its operations and infrastructure and grow the logistics sector for the benefit of the economy. With government's commitment to support its recovery and strong collaboration with customers and industry partners, Transnet is on course to recover and fulfil its strategic role in the South African economy." BUSINESS REPORT Visit:
Yahoo
13-05-2025
- Business
- Yahoo
Ethics Commission accuses retired MBTA manager of violating conflict of interest law
The Massachusetts State Ethics Commission publicly accused a retired MBTA official of violating the state's conflict of interest law in an Order to Show Cause on Tuesday. The commission alleges that former Environmental Compliance Manager Thomas Daly — who retired in January 2024 — unfairly favored his friend's recycling company during selection processes for awarding MBTA contracts and work orders, it announced in a press release. The commission alleges that Daly and the recycling company owner have been friends since at least 2017, and that the company also employed Daly since at least 2019. In 2017, Daly is alleged to have sent his friend technical specifications for a Request for Proposals (RFP) the MBTA planned to send for a comprehensive waste management program. After the MBTA issued the RFP in 2019, Daly served on its selection committee and inflated his bid evaluation scores for his friend's company, giving it an unfair advantage, the commission alleges. The MBTA ultimately awarded Daly's friend's company a three-year contract worth $1.3 million per year. Daly then helped the MBTA procure a successor waste management program that would go into effect when his friend's company's contract expired in June 2024. The commission alleges that he once again worked to unfairly advantage his friend's company during the selection process for this program. Daly also gave his friend other companies' responses to a 2022 RFP for the disposal of Orange Line cars and a 2023 Request for Information for MBTA 'waste-recycle management,' according to the commission. Finally, Daly is alleged to have recommended his friend's company to the MBTA's procurement manager for a rubber disposal project. The MBTA ultimately awarded the company a $16,000 work order for the project. The commission will schedule a public hearing to address the allegations against Daly within 90 days. It can impose a civil penalty of $10,000 for each violation of the conflict of interest law. How to claim a portion of major child booster seat class action settlement Mass. weather: Heavy clouds possible Wednesday before nighttime rain Person dies after daytime shooting in Roxbury Leominster man admits to trying to stab flight attendant in the neck with a spoon Springfield protests loss of $20M federal grant to protect environment Read the original article on MassLive.
The Citizen
12-05-2025
- Business
- The Citizen
Government-business partnership to accelerate delivery
Senior business leaders met with President Cyril Ramaphosa and ministers under the Government Business Partnership recently. The partners in the government-business partnership to accelerate delivery – the BLSA partnership have agreed to fast-track the implementation of key structural reforms and support performance improvements at Transnet and Eskom through an accelerated delivery plan and an intensified phase of its ongoing efforts to expedite delivery on priority interventions vital to economic growth and job creation. Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), says in her latest newsletter that the Government Business Partnership, established in 2023, is focused on accelerating crucial reforms and operational improvements to lift confidence levels and drive economic growth in four priority areas of energy, transport and logistics, crime and corruption and youth employment. Youth employment was added in January 2025. 'The partnership believes that this acceleration is necessary to achieve a step-change in progress in response to difficult economic headwinds. Focus will remain on improving Eskom's Energy Availability Factor (EAF) and unblocking delays in new generation capacity to ensure a continued reprieve from load shedding. 'Work is underway to resolve grid access and allocation bottlenecks that hinder new generation projects. While Transnet's performance is not at the level required, it has stabilised and there is a significant focus on growing volumes, which will increase exports and revenue collected to support economic growth and preserve and grow employment.' ALSO READ: Government must keep momentum in partnership with business Accelerated delivery needed in complex environment She emphasises that expediting reforms and performance improvement is crucial to reduce the possible negative impact of the complex global and domestic environment, which continues to present substantial challenges and uncertainty. Gross Domestic Product (GDP) growth projections for 2025 have been revised down and current forecasts remain far below the minimum of 3% economic growth required to create the level of jobs needed to make an impact on the country's high levels of unemployment, she says. According to Mavuso Ramaphosa said: 'Through the strength of this partnership, we have been able to unlock many constraints that undermine growth and job creation. While there is much to improve, the dedication and commitment from both government and business remains undiminished. The pace of our work must increase to match the scale of the challenge.' She says important progress has been made to lay the groundwork for sustained accelerated action, including the finalisation of the Transnet Network Statement, the launch of a Request for Information (RFI) to attract private investment in port and rail infrastructure and Nersa's approval of electricity wheeling regulations. 'These reforms enable broader private sector participation in energy, transport and logistics. Both the crime and corruption and the youth employment focal areas are largely tracking against their plans which have a longer-term time horizon.' ALSO READ: Housing, local gov and digital transformation at the forefront of Operation Vulindlela phase II Partnership welcomes second phase of Operation Vulindlela In line with the commitment to focused execution, the Partnership welcomed the launch of the second phase of Operation Vulindlela, which has a delivery focus that closely aligns with the Partnership's objective of more rapidly accelerating reforms and operational improvements that will drive growth and job creation, Mavuso says. She says at the meeting Adrian Gore, vice president of Business Unity South Africa (Busa) and business co-convenor of the Partnership, said: 'We are entering this accelerated execution 'sprint' with a real sense of urgency. 'Progress has been made, but it is not enough. This requires a step change in the pace of decision-making and execution. We need to redouble our collective efforts to help shift the country onto a sustained upward trajectory and deliver on our shared ambition of a virtuous cycle of growth, jobs, a more positive narrative and increased investment.'
