Association welcomes vertical separation of Transnet’s rail entity into two divisions

The African Rail Industry Association (ARIA) has welcomed the announcement of the vertical separation of Transnet Freight Rail into two distinct operating divisions – Transnet Infrastructure Manager (TRIM) and Transnet Freight Rail (TFR).

“This strategic unbundling represents a pivotal moment for the advancement of South Africa’s rail industry and reflects a forward-looking vision for the sector’s growth,” the association says in a statement.

In alignment with the National Rail Policy, this separation is a critical step toward strengthening the economic sustainability of the rail network, it posits. It anticipates that this will enhance operational efficiencies, facilitate increased private-sector participation and catalyse investment in South Africa’s rail infrastructure.

“This approach underscores the country’s commitment to modernising and expanding the rail sector to better meet the demands of a growing economy,” the association avers. It highlights that a revitalised rail network will boost economic development, attract new investments and create considerable employment opportunities.

This article originally appeared on engineeringnews.co.za. Read it here.