CEO Column: Creecy invites business to partner in passenger rail
Private sector investment in South Africa’s passenger rail network is a promising step closer this week following the latest Request for Information from Transport Minister Barbara Creecy.
However, the good news goes way beyond the milestone announcement and what it means for passenger transport; the RFI also signals a shift in government thinking around public-private partnership.
By allowing private business to solve business problems, government is in effect broadcasting its intention to refocus its resources and attention where it is most sorely needed – administration. Business can do what it does best, and government will be leaner and more efficient.
We are seeing the same paradigm shift in other areas, notably logistics and energy, albeit a gradual shift that is incomplete. The passenger rail RFI follows a similar RFI for the rail and port logistics sector earlier this year. That process is due to progress to the Request for Proposal phase before year-end.
Now is not the moment to bemoan the length of time it took to reach this point. Now is rather the time to seize the multiple opportunities arising from Minister Creecy’s announcement.
As the Minister said in her statement, the passenger rail RFI request covers a range of different areas including: fare collection systems; depot management; and utilization and commercialization of Prasa’s fibre network.
Successful private sector intervention in these areas would go a long way towards resolving many of the current challenges.
The caveat to all of this, of course, is that the tenders flowing from this announcement need to align with a transparent procurement process. We have seen many lofty government ambitions undone by self-serving officials and their accomplices.
Creecy’s RFI announcement coincides with City of Cape Town plans to update its Travel Demand Management Strategy, with a shift to public transport being one of the Strategy priorities. The City has long advocated for devolution of Metrorail’s passenger rail mandate to local government level.
In our view, Minister Creecy’s RFI on passenger rail may align with the City’s passenger rail ambitions and the prospect of a partnership agreement to the benefit of all parties.
By shifting emphasis towards partnership, rather than politics, government is indeed getting down to business. The private sector should take note and respond accordingly.
John Lawson
CEO of the Cape Chamber of Commerce and Industry