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Transport Director-General George Mahlalela has re-iterated that any decision on the restructuring of the country's rail operations will be dealt with by Cabinet.

The Director-General's comments follow media reports on plans to split Transnet to boost the ailing rail sector.

"As the Department of Transport, we wish to categorically state that as part of the Infrastructure Development Cluster Delivery Agreement, together with other relevant Departments including the Department of Public Enterprises responsible for Transnet, plans are afoot to ensure a significant shift of the movement of freight from road to rail. However, any restructuring of current rail operations, whether pertaining to the Department of Transport, the Department of Public Enterprises or even private operators, is a policy consideration that will be dealt with by Cabinet and communicated accordingly by Cabinet," said Mahlalela.

On 23 August 2011, as requested by the Parliamentary Portfolio Committee on Transport, Mr. Clement Manyungwana: Acting Deputy Director-General for Integrated Transport Planning in the Department of Transport made a presentation to Parliament on the Reduction of freight transportation by road: A shift towards rail. The presentation focused on various issues including:

· The challenges of transporting freight by both road and rail;

· An analysis of the road and rail market share (with mostly the market share shifting to road);

· Key freight corridors;

· Identified rail and road friendly commodities;

· Factors contributing to the decline of freight rail; and

· Policy and strategic thrusts.

Within the context of the above-mentioned issues, the portfolio committee raised questions on interventions and solutions in addressing challenges caused by road in particular, which spill over to the deterioration of the rail market share, as well as current specific transport policies, strategies and implementation plans.

In responding to the committee's questions, Mr. Manyungwana outlined what the Department of Transport has done in trying to address challenges, including the following:

· The 2005 Cabinet approved National Freight Logistics Strategy, which proposed an institutional arrangement for railways then, going forward.

· The Draft Rail Branch Line Strategy, which all relevant stakeholders participated in drafting including the Department of Public Enterprises and Transnet, which seeks to capacitate the current challenges faced by the secondary rail network and allow private operators on this specific network, and subsequently competition.

· The National Transport Master Plan, which deals with a demand forecast model in relation to demand for both passenger and freight transport and the insitutionalisation thereof.

· The Road Freight Strategy, which recommends proposals on how to better manage the road freight environment such as through axle load mass limits, commodities that were identified as road friendly as well as those that are rail friendly.

· The current green paper on rail policy as a blue print for railways (both passenger and freight in the country), currently being submitted for Ministerial approval and external consultation.

· A single Transport Regulator and related Rail Economic Regulator, which seeks to regulate market access on to the current rail network for private operators who would have an opportunity to operate on the secondary rail network.

The Department of Transport clearly stated that, except for the National Freight Logistics Strategy, these were still mere proposals for discussion and consultation, before presentation to Cabinet for approval in line with the Infrastructure Development Custer Delivery Agreement, which the Minister of Transport and Public Enterprises chair and co-chair respectively.