/ 30 June 1999

INFRASTRUCTURE PRIVATISATION LURKS

PORTS and rail networks are next in line for partial privatisation, after the successful sell-off of 20%of South African Airways to Swissair, Trade and Industry Minister Alec Erwin said on Tuesday. Erwin told a Cape Town press briefing that ports and rail had been targetted by the government because much new investment in the country depends on the upgrading of infrastructure. Investment, he said, focused on the so-called “spatial development initiatives” and “industrial development zones”. Erwin said the government would in the next few weeks make announcements regarding development projects in the KwaZulu-Natal province port cities of Durban and Richard’s Bay, and in Johannesburg. “The priority therefore will be in the further restructuring of the port authority Portnet, and in the rail network.” Finance Minister Trevor Manuel, also addressing the press briefing, said the government expected to rake in some R4-billion through its privatisation projects in the current financial year. Manuel said that in addition to the ports and rail, state forestry company Safcol is being “prepared” for restructuring.