In a recent report by the Southern African Transport Communications Commission-Technical Unit (SATCC-TU), the estimated cost of the project will be US$12.1 million and has the potential to immensely improve the operational efficiency of the SADC railway network.

"The project entails the provision of the necessary software, computers, satellite and microwave communication systems as well as the necessary training for using the system to all the railways involved in the project and also at the regional level," says SATCC- TU in its 2001-2002 annual report.

The project, also known as the Rolling Stock Information System (RSIS), will enable railways to know on almost real time basis where all their rolling stock is and perhaps more importantly, where the customers' shipments are and advise them as necessary.

RSIS is set to address one of the key complaints of railway customers, which is the information on the whereabouts of their cargo once handed over to the railway system.

Also included in the restructuring process are the railway reforms that comprise rail tracks, locomotives and wagons, general rehabilitation of infrastructure and inclusion of the private sector in the provision, operation and management of the railway systems in the region.

"Restructuring is ongoing and will be undertaken by the individual railway administrations," said Southern African Railways Association (SARA) Executive Director, Engineer Remmy Makumbe.

The most favoured method of involving the private sector in the running of railways has been through concessioning as opposed to outright sale of the railway system to private investors.

Apart from South Africa, private sector participation in the railway industry is visible in Malawi, Mozambique and Zimbabwe where efficiency gains are beginning to be experienced and benefits of a market driven rail transport industry are being realized, says the SATCC-TU report.

At the earlier stages of the project, an increased self-sufficiency of the railways is expected and thereafter involvement by the private sector in the provision, operation and management will be intensified.

The restructuring comes at a time when most railways in the SADC region are experiencing problems in attaining financial viability, a situation which has been brought about by challenges faced by railways and posed by several factors such as:

• withdrawal of financial support by government
• excess capacity in the transport sector;
• intense competition from road transport;
• changing of needs of customers in service quality;
• loss of traffic from other state-owned enterprises because of economic reforms; and
• functioning in a framework of government ownership as parastatals.

The restructuring also comes at a time when criticism has been leveled against the reliability of the industry following two fatal accidents experienced in Mozambique and Tanzania. Both accidents happened a month apart involving train compositions with passenger coaches and both were suspected on malfunctioning of locomotives on inclines, resulting in the passenger coaches rolling back.

The SATC-TU report says the reforms are being undertaken in the context of the transport protocol, which states that public and private sector partnerships and involvement in all transport sectors should be strengthened. (SARDC -- SADC Today)