Anglo CEO says door not closed on Transnet concession deal

CONCESSIONING South Africa’s rail infrastructure was not off the table, said Anglo American CEO Duncan Wanblad.Transnet, the state-owned rail and ports company, has rejected proposals from the private sector that it own the 21,232km rail network on a concession basis, normally a long-term agreement. Transnet’s ‘network statement’, published in December, called for third party investors, such as mining companies, to operate trains via agreed slots.There’s a tacit expectation that the private sector would also invest in the rail which is delapidated in parts following years of vandalism and neglect.According to Minerals Council chief economist Hugo Pienaar, some R15bn a year is needed to rehabilitate the existing rail network which would require the South African Treasury to allocate scarce funds, ideally starting with finance minister Enoch Godongwana’s budget statement later this month.Said Wanblad: “It’s a package deal. Whoever operates these lines needs to assurance there is safety first. You can’t concession top of rail when there is work to concession the rail as well. Either Treasury has to come to party or they have to think more creatively how they partner this stuff”.Wanblad suggested operators could even rebuild the rail network where required citing the example of Australia. “Our Government is moving,” said Wanblad. “There is progress in this space.“I have been deeply involved in the debate and the conversations on this and there is a real, pragmiatc approach that’s being taken. It is sometimes slow and challenging, but it is not static; in fact, I’m positive on it.”The Minerals Council’s Pienaar said there was a tension between “tough love and the urgency” of upgrading the network. “Transnet needs R15bn a year for maintenance but ask the question: would miners run their own trains on a network that is broken?”The post Anglo CEO says door not closed on Transnet concession deal appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com