There is renewed hope for the revitalisation of the country's rail network and infrastructure following the government's announcement that it will issue a Request for Proposals in August to attract private investment into the national rail network.
Roelof van den Berg, CEO of Gap Infrastructure Corporation said the announcement was a critical milestone which could lead to meaningful public-private partnerships that restore rail's vital role in South Africa’s economic and social fabric.
In the past, the passenger rail network served over 2.5 million people daily, but deterioration over several years means commuters, especially those in lower-income brackets, no longer have access to this safe, affordable transport.
Van den Berg said the government's latest move could have wide-reaching implications for infrastructure, connectivity, and long-term economic growth.
“With this, government is sending a clear message: the door is open to innovation and shared progress, and the private sector has a critical role to play in supporting development. As for infrastructure developers, we also have an opportunity to play a key part both in developing new rail networks as the need arises, and assisting government in attracting the required investment by leveraging our experience and relationships with investors,” he said.
Opportunities for private investment would become available in areas including locomotives, depots, sidings, control systems, and maintenance facilities, all of which had potential for expansion and improvement.
“The need is vast, as are the opportunities for private investors looking to direct their money toward something highly beneficial to the whole of South Africa,” said Van den Berg. “A clear path for investors who want to be part of modernising the country’s rail system is actively being forged, and we have an opportunity to help drive that conversation, and shape the strategies that will drive this investment."
He added the prospects for investment were not limited to the tracks. Other opportunities could be found in developing infrastructure that supports the railways, including high-capacity terminals, modern signalling infrastructure, efficient loading facilities, expansion-ready corridors, and the housing and commerce around new rail hubs, and the industrial zones that could spring to life as the country’s logistics networks continue to improve.