As government continues to drive structural reforms through Operation Vulindlela, Business Leadership South Africa CEO Busi Mavuso says in her latest newsletter that private-sector participation continues to strengthen.

She highlights a major recent milestone of Operation Vulindlela as having been the division of Transnet’s freight rail business into two functions, one responsible for infrastructure management and another for operations.

Further, Mavuso expects clarity on pricing from Transnet in November for access by private-sector operators to the network, as well as for the State-owned utility to invite expressions of interest from potential train operators.

With Transnet Freight Rail being one of the operators, it provides some level of independence to the infrastructure manager and a level playing field for operators to access the network, she points out.

Some of the targets under Phase 2 of Operation Vulindlela include the rail network moving 193-million tonnes a year of goods, compared with the current baseline of 170-million tonnes.

“Steps like these contribute to enabling the private sector to do more to help grow the economy. They improve our confidence that government is delivering on reforms to improve the business environment.

“We need government to continue the trajectory, making the key decisions that drive reform. Government must avoid delays and confusion and continue making bold and decisive reforms that move from concept to reality quickly,” Mavuso states.