By Paul Vecchiatto

The Cape Chamber of Commerce has welcomed the proposal by the Department of Transport to create a separate entity to run SA's rail services and to open some of the lines to the private sector.

"The rail network is a vital part of our transport infrastructure and it both needs and deserves the special attention it would receive as a stand-alone service," said Michael Bagraim, president of the chamber, on Thursday.

He said the service had deteriorated to the point where even coal was being transported by road to the Western Cape.

"Transnet is involved in the purchase of new locomotives and rolling stock but we need to go beyond that and build up our capacity to operate the system and to get the best out of the new investments," Bagraim said.

He also praised the idea of opening up some lines to the private sector.

"We already have Rovos Rail providing an excellent service for tourists and there is no reason why the idea cannot be extended to companies wanting to operate a fast-freight service.

"If some of our big companies were able to buy and operate their own freight trains they would be creating capacity Transnet would not have to finance and we would be taking goods traffic off the roads," Bagraim said.

Peter Hugo, chairman of the chamber's transport portfolio committee, said that at present the rail service was being cross-subsidised by profits from the ports. This was an unhealthy situation as our ports and airports were now amongst the most expensive in the world.

"If the ports did not have to generate subsidies for the rail system they would be able to charge more realistic tariffs and exporters and importers would benefit as well as the economy as a whole," Hugo said.

Source: I-Net Bridge