Mesela Nhlapo, Chief Executive Officer of the African Rail Industry Association (ARIA), has highlighted that the railway industry in South Africa is the backbone of the economy.
Nhlapo stated during a recent ARIA AGM, that ARIA, like the government, is committed to rebuilding, reimagining, and reclaiming the promise of the railways. She highlighted that the power to shape the railway industry lies in the hands of stakeholders who believe in its potential and are ready to collaborate for its revival.
She described this as a new era of collaboration, emphasising that real reform is not about replacing one system with another but about fostering partnerships. Nhlapo stressed that the government and the private sector must work side by side and not as competitors, but as collaborators, to drive economic growth in South Africa.
She further stated that stakeholders must ensure that localisation is not merely a policy but a practical reality. Additionally, she emphasised that reviving the railway industry must include embedding broad-based Black economic empowerment into its core structure. According to Nhlapo, full transformation is not optional but essential, and ARIA stands at the centre of this mission. The association aims to build bridges, serving as a platform where the state and private sector can come together to design a future that benefits all.
She declared that this year would be a year of active participation for all stakeholders in the railway industry, adding that the time for division is over.
Nhlapo acknowledged the challenges facing the industry, including infrastructure constraints and inefficiencies. She urged collective action to resolve these missed opportunities, asserting that the partnership between the government and the private sector is one of necessity.
Her remarks follow the recent launch of the Private Sector Participation in Rail and Port Freight Logistics Projects by Transport Minister Barbara Creecy. This initiative is expected to mark a pivotal milestone in the government’s efforts to collaborate with the private sector to restore the rail network and ports to their role in promoting trade and economic growth.
The Roadmap for the Freight Logistics System in South Africa clarifies that strategic infrastructure, such as rail lines and ports, will remain under public ownership. However, the project sets the stage for increased competition in rail and port terminal operations, which the government anticipates will attract private investment and elevate the country’s infrastructure to world-class standards.
The transport ministry has launched an online Request for Information (RFI) to create an enabling environment for private sector participation and enhanced investment in rail and port infrastructure and operations.
South Africa’s rail and port infrastructure faces several challenges, including declining performance, theft and vandalism, under-investment, and operational inefficiencies.
Creecy disclosed that, along with Transnet, the government has received numerous unsolicited proposals from the private sector offering investment, skills, and expertise to support the rehabilitation and reform of the struggling rail and port systems.
Written for Railways Africa by Chamwe Kaira
