The response to the first question by hon Modise is that the department, as part of its monitoring work, meets with Transnet on a monthly basis as part of monitoring their performance, as well as mitigating actions that are taken to improve the efficiency, reliability and cost effectiveness of freight transportation.
With regard to (a) and (b) of the question, there is a very strong correlation between efficiency and reliability. Specifically, poor reliability of equipment and rolling stock negatively impacts on Transnet's efficiency. Currently, the most significant challenges
negatively impacting on reliability and efficiency are as follows: the maintenance backlog at strategic container terminals; the shortage of critical skills at the ports; the poor state of the rail network, leading to restricted train speeds, and reducing rail capacity and service levels; the poor availability and reliability of rolling stock due to age; as well as security issues on rail and pipelines, including community unrest at times and the theft of cables and locomotive batteries.
The corrective actions being taken to address these include - and are not only isolated to the points I'm making here - the following. We commissioned an independent assessment on the condition of key port equipment; we have also ensured that there is the expedition of the purchase of new port equipment; we have strengthened the manning levels at ports so as to optimise functionality there; we have brought expertise in terms of international port equipment operators that are training and mentoring some of our staff, particularly at Transnet, to achieve the acceptable benchmarks; the leadership capability as well as management in port terminals has been strengthened through the deployment of experienced leadership; the department has also, in conjunction with Transnet, engaged with the Department of Trade, Industry and Competition, as well as National Treasury, with the aim of getting temporary exemptions for Transnet
to accelerate the procurement of critical parts and equipment necessary to address the maintenance backlogs that have been identified; the rehabilitation of the infrastructure network backlog is being fast-tracked; the replacement of rail has been accelerated, particularly targeting high volume, high density corridors; new locomotives are being commissioned and deployed to improve quality, reliability and customer service; work on the build programme is being implemented; equipment is also being deployed to detect and prevent component failures before they occur; and we have also begun engaging with the relevant authorities with the aim of resolving security issues faced at Transnet, particularly at our ports.
With regard to the last part of the question, the department is working with Transnet to identify ways in which to improve cost effectiveness on the country's rails and ports, including increasing port and rail volumes; establishing the single transport economic regulator; realigning tariffs of both ports and rail to remove imbalances; and promoting greater competition in port operations.
Lastly, we have also commissioned a study to investigate the implications of corporatising the National Ports Authority as provided for in the National Ports Act, which is aimed at promoting competition in port operations.