A train on the tracks File Picture: Supplied by Transnet
Durban -The Umkhonto we Sizwe (MK) Party has expressed concerns about the decision of the Transport Minister, Barbara Creecy, to approve the publication of the Transnet Network Statement, a move aimed at opening up South Africa’s rail network to third-party operators.
“While the MK Party will closely examine the details of the statement once published, we reaffirm our opposition to the rail privatisation programme championed by the Democratic Alliance (DA) and African National Congress (ANC) coalition,” said the party in a statement.
The party said it was alarming that the decision comes at a time when rail freight volumes have plummeted to their lowest levels in decades.
“Instead of stabilising the freight logistics system and strengthening Transnet’s balance sheet, the government has chosen a path that will have devastating consequences for South Africa’s economy, jobs, and competitiveness.
The MK Party said it is further concerned by Transnet’s recent half-year financial results, which reported a loss of over R2.2 billion.
It said with full-year results expected to reflect even greater losses, it is clear that current rail reform initiatives are failing to address the core challenges facing Transnet.
“We call on the Minister of Transport to abandon these regressive reforms and instead prioritise measures that will stabilise and revitalise Transnet. The MK Party has submitted motions in Parliament twice, calling for a national debate on Transnet’s future.
“We now urge Parliament’s Programming Committee to urgently schedule this debate to develop appropriate reforms for our rail and port systems.