Transnet Freight Rail has signalled a need to hike railing tariffs as it plans to take a more commercial approach to the business in a bid to recover costs and invest in infrastructure.
"Part of the problem, as we see it now, is that we haven't been fully recovering our costs," said Transnet Freight Rail CEO Sizakele Mzimela. "If we were able to do that, we then would be able to ensure that we continuously reinvest into infrastructure. I'm not saying that is the only problem, but that is a very big challenge for us right now."
Speaking at the McCloskey Southern African Coal Conference in Cape Town, Mzimela said the need to rebase the tariffs is not driven by lower volumes on certain lines, such as the troubled coal export line.