Ownership and Competition are Key Considerations in Rail Performance Improvements - A South African Perspective

Abstract

This paper explains how ownership and competition have become major forces in changing state-owned railways. The various ownership models and structures available to governments, and their implications are analysed and summarised. The author further reviews progress made in South Africa with rail reform and describes the implementation of concessioning with its ownership options. The unique circumstances and challenges in South Africa and the effects on ownership and competition are compared with some international case studies. Vertically integrated concessions, involving the private sector in the provision of public transport services and infrastructure, are motivated as a preferred option for South Africa, over the separation of infrastructure from operations. The importance of a well established planning environment is argued to be a critical pre-requisite for the successful structuring of public-private partnerships.