This announcement follows numerous unsolicited proposals from the private sector, which offered investments, expertise, and innovative solutions to address the country's ailing rail and port systems.

Transport Minister Barbara Creecy confirmed the department's plans, emphasising that the PSP unit would help address longstanding issues such as inadequate infrastructure, inefficiencies, and security concerns affecting both the rail and port sectors.

These challenges have been hindering SA's economic growth and the movement of goods.

“The current state of rail infrastructure is dilapidated, and ports are often congested, causing delays that result in huge costs for businesses," said George Sebulela, founder and President of the African United Business Confederation (AUBC). “This is a very welcome decision by the Minister as it promises to address the pressing issues of infrastructure decay and inefficiency."

Sebulela highlighted that the lack of investment, compounded by delays in regulatory and policy decisions, has exacerbated the situation. SA's  rail systems, especially those involving freight and cargo, are struggling with limited capacity, reducing the profitability of exports and imports.

Sebulela also stressed the importance of technological innovation to resolve these issues. "Private sector involvement will bring much-needed innovation and efficiency. We're talking about the application of advanced technologies such as Artificial Intelligence, big data, and state-of-the-art surveillance systems, which can improve security and streamline operations," Sebulela said.

According to Sebulela, the private sector's drive for profit can lead to an influx of investment, facilitating the much-needed upgrades to rail and port infrastructure. He also noted that such investments could lead to job creation, as efficiency improvements often bring about an increase in demand for skilled labour.

“The private sector’s involvement will bring in expertise to not only modernise infrastructure but also ensure the growth of skilled labour. The technological advancements needed for this transformation will require training and development, which is a key focus for private businesses,” Sebulela added.

The establishment of the PSP unit represents a significant shift in how SA plans to address the inefficiencies in its transport sector. The Department of Transport, alongside Transnet and PRASA, will now begin formal discussions with private sector players to facilitate this much-needed reform.

--ChannelAfrica--