Is it working?

The legal framework is now largely in place, providing certainty and a platform for reform. However, the National Rail Masterplan (NRMP) – originally expected by 2025 – has been postponed to the end of the year.

Actions

•tERT Act signed and operationalised •tRailway Safety Bill passed by National Assembly and NCOP •tNational Rail Bill and Master Plan under development, with ongoing stakeholder engagement.

Are there plans?

The ERT and Railway Safety Bill are in force, while the NRMP and Rail Bill are still in development and experiencing significant delays.

Is it on the agenda?

Yes. The National Rail Bill, ERT Act and Railway Safety Bill are all referenced in SONA, cabinet documents and departmental plans.

Goals

The Natonal Rail Bill aims to establish the legislative framework to support the liberalisation of the rail sector and align South Africa’s rail regulatory environment with international best practice to ensure safety, access and economic regulation.

Is it working?

Yes, the IRERC has demonstrated substantive efficacy. It successfully managed the complex consultation process on the Network Statement, balancing stakeholder demands with Transnet's initial proposals to produce a "commercially responsible approach that is palatable for industry". The IRERC's review process resulted in significant tariff reductions. For example, the automotive transport tariff was reduced from the initially proposed R120 per train kilometre to more affordable differentiated rates. The final Network Statement published in December 2024 represents a marked improvement from the draft version, with tiered pricing that has been globally benchmarked.

Actions

The IRERC has been fully operationalised with dedicated secretariat staff and established procedures. Key actions include: • Managing the public consultation on Transnet's Draft Network Statement with 30-day comment periods • Conducting information gathering sessions in Durban, Cape Town and Johannesburg • Reviewing and approving tariff proposals from the Transnet Rail Infrastructure Manager (TRIM) • Facilitating stakeholder engagement between infrastructure managers and private operators • Successfully approving the final Network Statement and differentiated access tariffs for 2024/25

Are there plans?

The IRERC operates under the Roadmap for the Freight Logistics System, which provides detailed guidance on its functions and responsibilities. The framework includes specific timelines for consultation processes, stakeholder engagement protocols and clear pathways for transitioning regulatory oversight to the TER once established.

Is it on the agenda?

The IRERC is firmly on the government agenda. Cabinet approved the Roadmap for the Freight Logistics System in South Africa in December 2023, which mandated the IRERC to manage the consultation process on the Network Statement. The White Paper on National Rail Policy, approved by Cabinet in March 2022, formally established the IRERC framework.

Goals

The IRERC aims to guide strategic direction for implementing economic regulation in the rail sector and serve as an interim arrangement until the Transport Economic Regulator (TER) is established. Its primary objectives include managing consultation processes on Transnet's Network Statement, providing recommendations on access charges and facilitating stakeholder engagement between infrastructure managers and private sector participants.

References

• Reference Link One

Departments / Govt Institutions

Department of Transport Transnet

Is it working?

The transport economic regulator is yet to be established.

Actions

The president signed the bill into law (Economic Regulation of Transport Act)

Are there plans?

Aligned with the White Paper on National Rail Policy and freight logistics roadmap

Is it on the agenda?

To regulate prices across the transport sector

Goals

The Economic Regulation of Transport Bill, which aims to establish a transport economic regulator, has been signed into law.

Departments / Govt Institutions

Department of Transport Transnet

Is it working?

No action yet.

Actions

Limited information.

Are there plans?

Limited information.

Is it on the agenda?

Lack of clarity.

Goals

It is not yet known whether the policy has been proposed.

Is it working?

No action yet

Actions

Not drafted yet (but in the pipeline)

Are there plans?

Forms part of the freight logistics roadmap and aligned with the White Paper on National Rail Policy

Is it on the agenda?

Unclear on its objectives

Goals

The Department of Transport aims to draft a National Rail Bill to oversee rail infrastructure development, management and policy alignment.

Is it working?

The Master Plan is in a development phase with implementation frameworks being established. TRIM has developed a multi-source funding strategy to address the substantial investment requirements over the next five years to reach the 250 million tonne target. However, the plan faces significant funding constraints, with capital budgets for 2025/26 being reduced, highlighting the challenge of securing adequate resources for comprehensive network rightsizing. Substantive outcomes will only be measurable once the Master Plan is finalised and implementation begins.

Actions

The plan has been delayed. The separation of Transnet into infrastructure management and operations divisions supports the Master Plan implementation. TRIM has transaction advisors to conduct optioneering and viability studies for private sector participation on key corridors.

Are there plans?

Forms part of the freight logistics roadmap and aligned with the White Paper on National Rail Policy. The Department of Transport has established a Rail Planning Component to undertake centralised strategic rail network planning, including development of the Master Plan. TRIM has initiated network classification processes, categorising the B Network into strategic, non-strategic and redundant segments.

Is it on the agenda?

Yes, the Master Plan is a central component of government rail policy. The National Rail Policy White Paper mandates the Department of Transport to publish a National Rail Master Plan anchored in NATMAP 2050, to be updated at least every five years. President Ramaphosa has emphasised rail as the backbone of transport in South Africa, making the Master Plan a priority for the current administration.

Goals

The National Rail Master Plan aims to create a comprehensive strategic framework for South Africa's rail network development, balancing brownfields approaches that minimise costs by retaining viable infrastructure while identifying strategic, non-strategic and redundant network segments. The plan seeks to position rail as the national land transport backbone by 2050 through infrastructure investment and institutional reforms.

References

• Reference Link One

Departments / Govt Institutions

Department of Transport The Passenger Rail Agency of South Africa (PRASA) Transnet

Is it working?

No action yet

Actions

Although the TNPA has been reformed/restructured, these functions are yet to be applied as the transport economic regulator is yet to be established.

Are there plans?

None

Is it on the agenda?

Forms part of the freight logistics roadmap.

Goals

As there is currently no regulatory body/regulator for the transport sector, Transnet (TNPA) adopts self-regulation, which entails the development and self-enforcement of rules agreed upon for the mutual benefit of members. This type of quasi-regulation may also be used as a vehicle to set prices, permit access, or restrict certain practices, but it usually lacks governmental backing.