NATIONAL RAILWAY POLICY BY JESSIE TAYLOR
Full steam ahead New policy to transform South Africa’s rail sector
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new policy is set to introduce radical structural reforms to South Africa’s railway sector. South Africa’s railway plays an essential role in the economy, forming the backbone of the logistics and transport value chain. The sector is key to reviving the country’s economy and has been highlighted as integral to President Cyril Ramaphosa’s Economic Reconstruction and Recovery Plan. The new White Paper on National Rail Policy looks to increase investment in this essential infrastructure, as well as prepare the sector to add to economic growth in the future. A DECLINING RAIL SECTOR The new White Paper on National Rail Policy was gazetted at the start of May and unpacks plans to develop the South African railway network, with private sector investment and effective economic regulation that enables equitable access to both the primary and secondary network. The policy was approved by Cabinet in March, says Minister of Transport Fikile Mbalula. “The release of the White Paper on National Rail Policy represents a new epoch and a decisive break with the past, which saw the railways being used as an instrument to segregate society and give credence to a system of racial oppression,” he says. South Africa’s rail network has been operating for more than a century without a cohesive National Rail Policy. The lack of policy, as well as challenges over time, have lowered the efficiency of the system and limited its contribution to economic growth. According to Minister Mbalula, a 1986 report that advocated against new rail investments, and the deregulation of the road sector in 1988, has pushed large portions of the rail industry into acute decline. This gave rise to deferred maintenance of passenger rail assets, which resulted in the decline of commuter rail over the decades, with substandard service being provided in areas that predominantly serviced Africans.
32 | Public Sector Leaders | June 2022
