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Transnet Freight Rail (TFR) is costing the economy billions.
Its deteriorating performance has given rise to an intense contest behind the scenes to compel it to invite the private sector to run both trains and infrastructure. So far, this pressure – which is now also coming from within the Presidency - has been without success.
The costs are enormous. The mining sector has put the cost at R50 billion in lost export opportunities over 2022 this year so far alone. The forestry sector says that were it not for Transnet rail and port constraints, it could have increased exports by 14%, earning another R3.9 billion in foreign exchange. It now does an additional 40 000 road freight trips a year.
