MIPA welcomes Transnet Network Statement as a Turning Point for South African Rail
The Multi-Modal Inland Port Association (MIPA) welcomes the release of Transnet's Network Statement, a landmark development that opens up South Africa's rail network to third party operators, at an affordable cost structure. Approved in December 2024 by the Honourable Minister of Transport, Barbara Creecy, the Network Statement provides a clear framework for private sector participation in the rail sector, a move that is expected to transform freight logistics in the country. The Network Statement outlines the terms and conditions for access to the national rail infrastructure, 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.
Minister Creecy has described the Network Statement as a critical step towards achieving the government's goal of moving 250 million tonnes of freight per annum by rail within the next five years. Warwick Lord, Chairman of MIPA, praised the announcement, describing it as massively positive for the freight industry. "The release of the Network Statement is a transformative moment for South Africa's logistics sector,” he said. “It provides the clarity and certainty needed for private investment in rail operations, which will help us achieve the government's ambitious freight targets. This is a significant step forward in creating a more efficient, sustainable and competitive transport system.”
The Network Statement was developed through an inclusive consultation process involving Transnet, key stakeholders in the rail industry and the Interim Rail Economic Regulator. It provides a comprehensive overview of the freight rail network, including key corridors, infrastructure and services. The tariff system, based on a differentiated methodology, ensures fair and transparent access for third-party operators, enabling them to plan their services efficiently and invest in rolling stock.
Mike Daniel, Managing Director of RailRunner South Africa, and a MIPA member, highlighted the importance of this development for private operators. "With the Network Statement now in place, we can accelerate the deployment of our innovative road-to-rail solutions”.
RailRunner's sustainable technology, which is 40% lighter than conventional wagons and requires fewer locomotives, is perfectly suited to operate under the new tariff regime. This will allow us to offer an efficient and sustainable transportation option, working in conjunction with road transport to optimise the movement of goods and reduce reliance on single-mode solutions. This service offering rollout, will not be smooth sailing from the get-go because of the legacy issues of security and signalling. However, we remain optimistic that the ‘Rainbow Nation’ will rise above these problems by deploying innovative solutions such as Terminal Anywhere® and others.“
MIPA, which represents six major inland ports in South Africa and one in Namibia, is committed to supporting the shift from road to rail. Its members are working to implement efficient intermodal transfer facilities, develop technology-driven logistics solutions and establish secure supply chain corridors. These efforts are in line with government objectives to reduce road congestion, improve safety and reduce carbon emissions.
The Association also highlights the importance of public-private partnerships in achieving these goals. MIPA members are working with Transnet Rail Infrastructure Manager (TRIM) to ensure the smooth integration of private operators into the network. This includes addressing challenges at ports and along key corridors, encouraging investment in strategic infrastructure and improving service levels to meet the needs of cargo owners and logistics service providers.
“The publication of the Network Statement is a significant step towards realising the vision of a modern, efficient and sustainable rail system in South Africa,” concludes Lord. “MIPA and its members are committed to working with all stakeholders to ensure the success of this initiative, which promises to unlock new opportunities for economic growth, job creation and environmental sustainability. There is no doubt that road and rail transport are interdependent and must work together seamlessly to ensure efficient and sustainable transportation”.
MIPA Chairperson Warwick Lord
Mike Daniel, Managing Director of RailRunner South Africa, a MIPA member
About MIPA:
The Multimodal Inland Port Association (MIPA) is a newly-established industry body dedicated to promoting the movement of cargo from road to rail through inland ports. Dedicated to sustainability and efficiency, MIPA seeks to drive positive change in the transportation sector collaborating on best practices for public-private partnerships, creating environments where business can thrive and delivering innovative solutions for improved supply chains.
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Contact Person: Catherine Larkin – CVLC Communication
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