NATIONAL RAIL POLICY Green Paper 2015 NATIONAL RAIL POLICY Green Paper August 2015 Please submit your comments to: Director-General National Department of Transport 159 Forum Building Cnr Struben and Bosman, Pretoria, 0001 OR Private Bag X193 Pretoria, 0001 Email: [email protected] For Attention: Chief Director: Rail Regulation Mr. Ngwako Makaepea Tel: (012) 309 3896 Email: [email protected] Fax: 012 309 3130 Director: Rail Policy and Strategy Development Ms. Hlengiwe Sayd Tel: (012) 309 3313 Email: [email protected] The National Rail Policy Green Paper is published on www.transport.gov.za DISCLAIMER: Users may apply or process this data, provided the Department of Transport (DoT) is acknowledged as the original source of the data, that it is specified that the application and/or analysis is the results of the user’s independent processing of the data and that neither the basic data nor any reprocessed version or application thereof may be sold or ordered for sale in any form whatsoever without prior permission from the DoT. NATIONAL RAIL POLICY Green Paper 2015 AUGUST 2015 National Rail Policy | Green Paper Table of Contents List of Figures ................................................................................................................................................................i List of Tables ..................................................................................................................................................................i Abbreviations ................................................................................................................................................................i Definitions .....................................................................................................................................................................ii Foreword ...................................................................................................................................................................... 1 Executive Summary ..................................................................................................................................................... 2 Chapter 1 ..................................................................................................................................................................... 4 Introduction 1.1. Background ...................................................................................................................................................... 5 1.2. Situational Analysis .......................................................................................................................................... 6 1.2.1. Historical Overview of Rail ................................................................................................................................. 6 1.2.1.1. The Early Development Phase ....................................................................................................... 6 1.2.1.2. The South African Railways & Harbours Phase ............................................................................... 6 1.2.1.3. The Pre-revitalisation Phase ............................................................................................................ 8 1.2.2. The South African Rail Industry and Structure ................................................................................................... 8 1.2.2.1. Transnet SOC Ltd ........................................................................................................................... 9 1.2.2.2. Passenger Rail Agency of South Africa ......................................................................................... 10 1.2.2.3. Gautrain Management Agency ...................................................................................................... 10 1.2.2.4. Private Operators .......................................................................................................................... 10 1.2.2.5. The Supply Industry ...................................................................................................................... 11 1.2.3. Rail’s Role in South African Socio-Economic Development .............................................................................. 11 1.2.3.1. Freight Rail .................................................................................................................................... 11 1.2.3.2. Passenger Rail .............................................................................................................................. 12 1.2.3.3. Liberating Rail ............................................................................................................................... 13 1.3. Policy, Legislation and Strategies .................................................................................................................. 13 1.3.1. The Status Quo ............................................................................................................................................... 13 1.3.2. Constitution of the Republic of South Africa .................................................................................................... 13 1.3.3. White Paper on National Transport Policy ........................................................................................................ 13 1.3.4. Southern African Development Community Protocol on Transport................................................................... 14 1.3.5. Moving South Africa ........................................................................................................................................ 14 1.3.6. National Environmental Management Act ........................................................................................................ 14 1.3.7. National Railway Safety Regulator Act ............................................................................................................. 14 1.3.8. National Freight Logistics Strategy .................................................................................................................. 15 1.3.9. National Rail Plan ............................................................................................................................................ 15 1.3.10. National Land Transport Strategic Framework ................................................................................................. 15 1.3.11. Public Transport Strategy ................................................................................................................................ 15 1.3.12. Legal Succession to the South African Transport Services Amendment Act .................................................... 16 1.3.13. National Land Transport Act ............................................................................................................................ 16 1.3.14. Industrial Policy Action Plan 2014/15–2016/17 ............................................................................................... 16 1.3.15. National Development Plan 2030 .................................................................................................................... 17 1.3.16. The New Growth Path for South Africa ............................................................................................................ 17 Chapter 2 ................................................................................................................................................................... 18 Global Experience and South Africa’s Rail Challenges National Rail Policy | Green Paper AUGUST 2015 2.1. Global Experience .......................................................................................................................................... 19 2.1.1. The Railway Renaissance ................................................................................................................................ 19 2.1.1.1. Introduction .................................................................................................................................. 19 2.1.1.1.1. Rail’s First Rise and Fall .......................................................................................... 19 2.1.1.1.2. Emergence of New Growth Curves and Institutional Arrangements......................... 19 2.1.1.1.3. Implications for Rail - Road Modal Split .................................................................. 20 2.1.1.2. Inherent Railway Competitiveness ................................................................................................. 20 2.1.1.2.1. Three Perspectives on Competition and Competitiveness ....................................... 20 2.1.1.2.2. Inherent Railway Competitiveness and Rail’s Genetic Technologies ......................... 21 2.1.1.2.3. One Potentially Weak Market Space ....................................................................... 22 2.1.1.2.4. A Frugal Transport Mode for an Energy-scarce Future ............................................ 22 2.1.1.2.5. Significant Renaissance Events .............................................................................. 23 2.1.1.3. Selecting a Frame of Reference .................................................................................................... 25 2.1.1.4. Institutional Arrangements ............................................................................................................