The CEO of Traxtion Africa, which operates the continent’s largest rolling-stock fleet, predicts a transformation in Africa’s biggest freight rail market with the imminent involvement of private operators.
James Holley revealed that the South African government is on the verge of releasing a rail network statement, setting out rules for private rail participation, following public consultation.
Speaking at an infrastructure conference in Johannesburg, Holley emphasized the significance of this step, stating that it marks the beginning of a new era for the rail sector, scheduled to commence in April with the release of the network statement.
This initiative forms part of a comprehensive plan led by President Cyril Ramaphosa’s office to revitalize South Africa’s ports and rail system, aiming to increase private involvement in an industry traditionally dominated by state monopoly Transnet.
Mismanagement and corruption have hampered Transnet’s efficiency, resulting in a decline in freight volumes and reliance on truck transportation, causing damage to national roads.
With South Africa boasting 85% of Africa’s rail network spanning 23,000 kilometers, private operators see an opportunity to capitalize on the country’s vast resources and existing infrastructure.
Holley views this as the “next frontier” for Traxtion, which operates in eight African countries, including South Africa.
Traxtion’s shareholders, Principle Capital and Harith General Partners, anticipate rapid growth spurred by regional reforms, positioning the company to lead the charge in revitalizing Africa’s freight rail market.
