Private train operators are entering a freight network built through decades of public investment. If the Network Statement does not make localisation and human capital development binding conditions of access, rail reform risks unlocking value for operators without rebuilding value for the economy.
Article submitted by: Mesela Nhlapo is Chief Executive Officer of the African Rail Industry Association (ARIA).
South Africa’s rail reform has entered a decisive phase. New private operators are preparing to access the freight rail network under a formal regime that will shape not only traffic on the lines, but the wider industrial outcomes of reform.
The issue is bigger than access. The policy case for open access was not only that more operators would run more trains. It was that reform would improve network performance, support investment and contribute to wider economic development. That promise will only be credible if the rules of access are tied to obligations that strengthen the domestic rail ecosystem.
The main line network was built over decades through public investment. Operators entering this space are receiving access to a strategic national asset. That access should carry clear responsibilities. If reform is to support long-term rail sustainability, the Network Statement must do more than allocate paths and charges. It must embed the conditions needed to rebuild capability in the sector.
This is where localisation matters. Localisation is not a slogan. In rail, it means building and maintaining domestic capability across rolling stock, component supply, track systems, signalling, depots, maintenance regimes and engineering services. These are the foundations of a resilient rail economy. Without them, open access may increase activity on the network without strengthening the industrial system behind it.
Human capital development is just as important. A sustainable rail sector depends on engineers, technicians, artisans, operators, planners and maintenance specialists. If the country wants a stronger network, safer operations and reliable long-term service, skills development cannot be left to chance or treated as a secondary issue.
The Network Statement is the instrument that can translate policy into enforceable obligations. It determines who may run trains, on which lines, at what price and under what terms. If localisation and human capital development are absent from those terms, the rail sector will lose an opportunity to use reform as a platform for industrial renewal.
South Africa does not need access without accountability. It needs a rail reform model that expands participation while rebuilding technical depth, maintenance discipline and local supply chains. That is how reform begins to create durable value for operators, the network and the economy.
