UASA Media Release: 26 August 2025
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Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA expresses cautious optimism regarding Transport Minister Barbara Creecy’s announcement that the government is opening the door for private sector participation in the nation’s freight rail network to address the logistics challenges impacting the enterprise and its economic position.
The government has shortlisted 11 private companies to operate on the freight rail network, granting access to 41 routes and six corridors used for transporting minerals, fuel, and other goods. The expectation is that these private operators will help boost freight volumes on South Africa’s rail network to achieve Transnet’s target of 250 million tonnes per annum. However, it is concerning that the state-owned enterprise (SOE) may need to rely on private investment to meet these targets and maintain financial viability.
Despite receiving various interventions and bailouts from the government, the SOE has struggled to revitalise itself and generate sufficient revenue for independent operations. Therefore, we hope the introduction of private companies will greatly benefit the enterprise, provided that corruption does not undermine the efforts in place to save it.
Minister Creecy emphasised that this initiative is not merely about allocating rail slots; it is a step towards fostering economic growth, job creation, and sustainability. We sincerely hope that this will materialise once the private companies commence their operations.
Additionally, we trust that the minister and the transport department have measures in place to tackle issues such as cable theft and vandalism along railway lines, ensuring that both ongoing and upcoming operations remain unaffected. The involvement of private companies necessitates that Transnet enhances its efficiency in service delivery to fulfil its promises to contractors.
While the department has yet to disclose the specifics of the agreement with the private companies—particularly what the private sector will gain in return for investing in state-owned infrastructure—we hope that the department will prioritize transparency in the regulations and contracts that will be established.
We are pleased that Transnet remains a state-owned enterprise, and we believe that fellow South Africans deserve to be informed about all operations related to these agreements.
Transparency must be prioritised to safeguard both the economy and the SOE.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.