South Africa has asked companies to help it set up an office to facilitate the entry of private operators onto the continent’s biggest rail network for the first time.
South Africa’s freight-rail services, run as a monopoly by state-owned Transnet, have deteriorated to the point where iron ore is piling up in stockpiles at mines and coal railings to ports are at a 30-year low. That’s slashed earnings for companies including units of Anglo American Plc and Glencore. It’s also resulted in a lower tax take for the cash-strapped government.
That document, which is open for public comment, has attracted criticism from miners and other companies reliant on rail as it aims to allow private operators to book slots for a period of one year, which then need renewing, rather than having access for longer periods. Longer access would encourage infrastructure investment.