The Federation of Unions of South Africa (FEDUSA) strongly condemns the Democratic Alliance’s (DA) formal submission on the Transnet Rail Infrastructure Manager’s (TRIM) latest Network Statement, which calls for South Africa to move away from Transnet operating the country’s freight rail network and instead allow private companies to take over key rail lines.
This proposal is a slap in the face of South Africans and undermines the country’s economic development agenda. In its submission, the DA argues that the private sector is being given too small a role. However, FEDUSA firmly rejects this position. The privatisation of state-owned enterprises (SOEs) typically results in restructuring processes that lead to job losses, weakened worker protections, and reduced benefits.
Private companies are primarily driven by profit, often at the expense of national interests and
workers’ livelihoods. Furthermore, increased private-sector control of rail operations is likely to drive up costs, placing additional pressure on small business owners who depend on Transnet services for exports and logistics.
FEDUSA acknowledges that Transnet is facing significant systemic challenges, including a debt burden exceeding R130 billion, widespread cable theft and infrastructure vandalism, shortages of locomotives and equipment, and historical governance and corruption issues. However, privatisation is not the solution to these challenges.
FEDUSA maintains that strengthening and reforming Transnet, while safeguarding its role as a strategic state asset, is essential to ensuring inclusive economic growth, job security, and affordable logistics for all South Africans.
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