South Africa Seeks Private Partners to Fix Underperforming State-Run Ports and Railways
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South Africa's state-run ports and freight-rail sector has cost the economy $26.7 billion since 2010. The government now wants private companies to help fix it.
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The plan calls for allowing private operators access to rail lines and ports. Even historically state-controlled coal and iron ore lines may open up.
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Volumes on coal and iron ore rail lines are plunging. Container ports are the least efficient in Africa.
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The plan aims to set up an independent regulator, a rail infrastructure manager, and a rolling stock leasing company with private partners.
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Transnet will become a holding company with subsidiaries that may sell stakes to private firms, but the state will keep majority control.