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Railway Transport
BY Liz Kneale
South Africa
28 July 2017
R 14 400.00 (ZAR)  
estimated $ 1 127.52 (USD) *
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Railway Transport


South Africa’s current rail network is the eleventh-largest in the world at 22,387 route-km or 30,400 track-km. It comprises 12,801km of national network, 7,278km of branch lines and 2,228km of narrow gauge urban network, as well as 80km of standard gauge regional rapid transit network. The Department of Transport regulates all transportation in the country and shares its responsibility for both passenger and freight infrastructure and operations with the Passenger Rail Agency of South Africa (PRASA), the Rail Safety Regulator (RSR) and Transnet SOC Ltd. The Department of Transport has oversight over PRASA and RSR, while Transnet, a state-owned company, falls under the Department of Public Enterprises. The Gauteng Provincial Government, through the Gautrain Management Agency (GMA), is the owner of the R27bn Gautrain system.


Revitalising the Rail Sector


The proposed National Rail Policy plans to stimulate a renaissance in the South African railway sector by introducing remedial infrastructural investment plus institutional interventions to position rail as the backbone of the national transport sector. Total capital expenditure by Transnet in the 2016 financial year reached R34bn with R11.1bn spent on the expansion of infrastructure and equipment and R18.5bn spent on maintaining capacity in the rail and ports divisions. For the 2017/2018 fiscal year the Minister of Transport allocated R19bn. The major revitalisation investment will entail the conversion of an outdated Cape gauge network to a standard gauge high-performance national rail network and the provision of sufficient capacity for heavy haul and general freight services, as well as for regional rapid transit and long-distance passenger services.


Report Coverage


As well as covering passenger and freight transportation by rail, the detailed report on the South African rail sector includes information on the manufacture of concrete railway sleepers and turnouts. The report profiles the two state-owned entities, PRASA and Transnet, as well as four other role players in the railway transport sector.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 6
2.2. Geographic Position 7
3. SIZE OF THE INDUSTRY 9
4. STATE OF THE INDUSTRY 15
4.1. Local 15
4.1.1. Corporate Actions 22
4.1.2. Regulations 22
4.1.3. Enterprise Development and Social Economic Development 25
4.2. Continental 28
4.3. International 30
5. INFLUENCING FACTORS 31
5.1. National Rail Policy – Draft White Paper 31
5.2. Economic Environment 33
5.3. Rising Operating Costs 33
5.4. Investment in Rolling Stock and Rail Infrastructure 35
5.5. Supply Chain Issues 44
5.6. The Movement from Road to Rail 45
5.7. Private Sector Participation (PSP) 48
5.8. Challenges and Issues Facing the Mining Industry 49
5.9. Technology, Research & Development (R&D) and Innovation 50
5.10. Labour 52
5.11. Cyclicality 55
5.12. Environmental Concerns 56
5.13. Crime, Safety and Security 56
6. COMPETITION 58
6.1. Barriers to Entry 60
7. SWOT ANALYSIS 60
8. OUTLOOK 61
9. INDUSTRY ASSOCIATIONS 62
10. REFERENCES 62
10.1. Publications 62
10.2. Websites 64
APPENDIX 1 65
Railway operators who applied for a railway safety permit during the period 2016/17, in accordance with the Railway Safety Regulator Act 65
APPENDIX 2 71
Transnet Freight Rail Business Units: Commodities and Critical Train Flows 71
APPENDIX 3 74
Examples of Current and Future Rail-Related Projects on the African Continent 74
APPENDIX 4 77
PRASA Capital Expenditure Programme MTEF 2017-2020 77
APPENDIX 5 78
Overview of the Manufacture of Concrete Sleepers and Turnouts 78
COMPANY PROFILES 87
BOMBELA OPERATING COMPANY (PTY) LTD 87
GRINDROD CORRIDOR MANAGEMENT (PTY) LTD 89
GRINDROD RAIL OPERATIONS (PTY) LTD 91
PASSENGER RAIL AGENCY OF SOUTH AFRICA 93
SAFREIGHT LOGISTICS (PTY) LTD 96
TRANSNET SOC LTD 98