The Department of Transports announcement that 11 private train operators have been granted access to 41 rail routes will boost competition and protect jobs, according to Business Unity South Africa Busa.
Transport Minister Barbara Creecy, announcing the decision last Friday, said the reform step was expected to unlock over 20 million additional tonnes of rail freight in the coming year, a critical contribution toward governments goal of moving 250 million tonnes by rail annually by 2029.
Busa stated that, as the economy battled logistics bottlenecks, rising costs and job losses, a more efficient freight rail system could lower export costs, improve competitiveness, and protect thousands of jobs currently at risk due to rising inefficiencies in key industries, from mining to manufacturing and agriculture.