Minister Barbara Creecy: Africa Rail Conference

Hon Kedibone Diale -Tlabela,Gauteng MEC of Roads and Transport 
Hon Sirleaf Ralph Tyler, Minister of Transport of the Republic of Liberia 
Representatives of Foreign Governments from our African continent and abroad 
Permanent Secretaries, Director Generals, Chief Executive Officers 
Captains of Industry; 
Members of the rail industry and operators from South Africa, SADC and the African continent at large;  
Members of the media, 
Distinguished guests  
Programme Director 
Ladies and Gentlemen, 

Thank you for inviting me to deliver a keynote address at this, the twenty fifth Africa Rail Conference and Exhibition with the theme: “Investment, development and technology for Rail operators, users, government and investors.” When I look at the following twelve themes that are going to be discussion during the conference I am convinced that this conference and exhibition is taking place at the opportune time for Southern Africa and for Africa as a whole.   

Rail transport is crucial for efficient and sustainable logistics, impacting both the movement of goods and people. It's particularly important for long-distance freight, potentially offering efficiency, cost-effectiveness and environmental benefits compared to road transport. Rail also plays a role in economic development and urban planning by facilitating trade and connecting communities, in short it has a vital role to play in the movement of people and goods. By maintaining and expanding our rail networks we can better connect and integrate our nations across the continent. 

The SADC region has a combined railway network that spans some 40 000km of rail, excluding local branch lines. This demonstrates the vast expanse of our railway infrastructure and why it must be positioned at the centre of an efficient passenger and freight transport system for the region.  A focus on more effectively migrating freight from road to rail could harness our region’s economic potential and ensure that the objectives of policies such as the African Continental Free Trade Area can be realised.  

It is, in this regard, important to note the significance of the AU 2016/2017 resolution of declaring South Africa as a hub for rail manufacturing in Africa, thus keeping manufacturing within the continent.  As a sign of South Africa’s intention to play a leading role in the revitalisation and expansion of the continent’s rail industry we formally deposited the Luxembourg Rail Protocol for ratification on 28 January 2025.The ratification became effective on the 1st May 2025. South Africa has thus become the 6th State, and the second African State after Gabon, to ratify the Protocol.  

The ratification of the Luxembourg Rail Protocol is an essential part of the rail open access strategy of Government. This would open international financing possibilities to new market entrants in terms of cheaper financing for railway rolling stock and the economic and environmental benefits of moving freight and passengers from road to rail. 

South Africa’s ratification of the Protocol supports the development of international financing in the railway sector and is an important step in facilitating financing in the rail industry, which is a key element for social development and economic growth in the SADC region and whole continent as recognised by the African Union Agenda. As a country we therefore encourage our countries in the region and continent consider this important instrument to enable rail investment with favourable terms and will foster interoperability in our railways. 

This gathering takes place at a very significant period in the history of rail transport in South Africa. Our country has embarked on a massive rail reform programme that seeks to improve the performance of our economy through revitalising the freight logistics sector and passenger rail. These reforms align perfectly with the key themes of this year’s conference - Investment, Development and Technology for rail operators and end-users - government and investors. Inefficiencies and widespread theft and vandalism of rail infrastructure have threatened to hamper South Africa’s economic opportunities in a post-pandemic period where growth is much-needed. 

This, combined with a logistics crisis in the country during the 2023/2024 festive season compelled the us to embark on a programme of ambitious reform of the sector.  Our reform programme is informed by the White Paper on the National Rail Policy of 2022 and complemented by the National Freight Logistics Roadmap of 2023.  The National Rail Policy aims to position the rail sector as a backbone of the transport value chain and foregrounds the importance of economic regulation to enable private sector participation and third-party access in the rail sector while the rail network and port infrastructure remain state owned.  

To address this, we have established the our new institution the Transport Economic Regulator to guide the implementation of economic regulation in the rail sector, to ensure regulatory certainty and fair risk allocation for private sector involvement. This process includes frameworks for network access, tariff methodology, service levels, and a contractual framework. In December last year the Department of Transport issued the Network Statement  and Rail Access Tariffs for 2024/5. 

At this juncture, work is currently underway to publish the Network Statement and Rail Access Tariffs for 2025/26 for our rail industry. Open access to the rail network will allow train operating companies to increase the volume of goods transported by rail, while our network infrastructure remains state owned.  This will ensure that South African minerals, vehicles and agricultural produce reach international markets, securing jobs and earning much needed revenue for our fiscus. 

As part of the rail reform programme, we have also created the new Transnet Rail Infrastructure Manager (TRIM) to have dedicated focus in the management of the rail infrastructure. The Transnet Freight Rail operating company would now focus on the transportation of rail commodities through its rolling stock. On 8 December 2023, the Cabinet approved the rail Private Sector Participation (PSP) Framework to guide private sector participation in the railway industry. 

The Framework mandates the Department of Transport to establish a PSP Unit to build state capacity and assist Transnet and PRASA with the procurement of potential PSP Projects.  To realise the establishment of the PSP Unit, the Department has concluded a Memorandum of Understanding with Development Bank of Southern Africa. Both the Department and National Treasury have appointed DBSA as the agent for hosting the Unit.  

The Department has identified the first phase of PSP Projects to be taken to the market for both passenger and freight rail and the ports sectors. The PSP Unit and Transnet have developed Requests for information (RFIs) on five priority rail  and port corridors. The purpose of the RFI is to develop a commonly agreed Framing Problem Statement (FPS) for PSP in the rail freight and port components, which will assist the PSP Unit with the design of the bid packages to be issued later this year.  The second batch of RFIs to be issued shortly will focus on passenger rail services. 

The White Paper on National Rail Policy, 2022 centralises strategic rail planning at national level and directs the development of a National Rail Master Plan (NRMP). The Rail Master Plan will be a comprehensive, evidence-based framework that outlines the future development of rail in our country. All of these policies are aligned with the Seventh Administration’s apex priority of sustainable and inclusive economic growth, and will contribute to the sector-specific target of moving 250 million tonnes of freight on South Africa’s rail network annually  by 2030. 

Important strides have been made in re-establishing our passenger network: The Passenger Rail Agency of South Africa (PRASA) has undertaken an extensive campaign of upgrading and refurbishing stations and depots that were subjected to vandalism and theft during the covid lockdown period. As a result of these efforts 32 of 40 priority lines have re-entered into service, with all services on the Cape Town central line set to be restored in the coming weeks. Work is ongoing to re-signal the PRASA’s commuter lines, which will increase the frequency of its passenger service and contribute to the objective of meeting the prepandemic level of 600 million passengers on its network per annum by 2030. 

 Ladies and gentlemen as I conclude, I wish you well in the forthcoming discussions and exchange of knowledge over the next two days. This is an exciting time for the renewal and revival of rail on our continent.  With vision, policy implementation  and determination we can ensure this ushers in a new era of logistical efficiency and inclusive economic growth in Africa. I thank you. 

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