Operation Vulindlela: 60% freight logistics sector reforms delayed

A progress report on Operation Vulindlela shows that 60% of reforms in the freight logistics sector are delayed, while only 40% are on track.

The energy and logistics sectors have previously been highlighted as weighing on the economy and discouraging investment and economic growth.

Providing an update on the reforms, the Presidency and National Treasury said progress has been made to implement reforms with the publication of a rail master plan, which includes freight and passenger rails.

The acting director for microeconomic policy at the National Treasury, Aalia Cassim, said the reforms include a new port authority.

“In terms of Transnet's further restructuring, there is some progress in terms of establishing the Transnet Rail Infrastructure Manager as a subsidiary, and that is in line with the guaranteed conditions that Treasury set.”

Cassim added that the Transport Minister, Barbara Creecy, will now operationalise the transport economic regulator.

“In terms of the next steps, publishing the network statement is critical and this would take into account a new tariff, an updated access tariff, as well as recommendations from their Interim Rail Economic Regulatory Committee capacity.”