JOHANNESBURG - Transport Minister Barbara Creecy has defended the pace of Transnet's rail reform, saying opening the freight rail network to private operators is a commercial measure aimed at improving efficiency.
Speaking at the African Rail Conference at the Sandton Convention Centre, Creecy said the reforms introduced by Transnet over the past two years represent the most significant changes to South Africa's rail sector in a century.
She noted that in March, Transnet approved the first 11 private freight operators to run on its rail network.
"We've had private operators in the port system for decades, but this is the first time we've had private rail operators," Creecy said.
She stressed that freight rail is a commercial activity that must be financially sustainable, unlike passenger rail, which is typically subsidised around the world because it is regarded as a public good.