Original Research

Regulating the SADC Regional Railway Corridors for Investments

Lubinda M. Sakanga, Erastus M. Mwanaumo, Wellington D. Thwala
Journal of Transport and Supply Chain Management | Vol 18 | a934 | DOI: https://doi.org/10.4102/jtscm.v18i0.934 | © 2024 Lubinda M. Sakanga, Erastus M. Mwanaumo, Wellington D. Thwala | This work is licensed under CC Attribution 4.0
Submitted: 29 March 2023 | Published: 15 February 2024

About the author(s)

Lubinda M. Sakanga, Department of Engineering and Built Environment, Faculty of Engineering, University of Johannesburg, Johannesburg, South Africa
Erastus M. Mwanaumo, Department of Engineering and Built Environment, Faculty of Engineering, University of Zambia, Lusaka, Zambia Department of Civil Engineering, College of Science Engineering and Technology, University of South Africa, Pretoria, South Africa
Wellington D. Thwala, Department of Civil Engineering, College of Science Engineering and Technology, University of South Africa, Pretoria Department of Built Environment and Information Technology, Faculty of Engineering, Walter Sisulu University, East London, South Africa

Abstract

Background: According to the Southern African Development Community (SADC) the Southern African railway network extends homogenously through 1067mm cape gauge across 12 of the 15 SADC nations. Nonetheless, the network is constrained from efficient and effective operation due to insufficient investment in maintaining and upgrading affected tracks and equipment apart from inadequate human capital. This article presents the case of regulation as a plausible solution.

Objectives: To advocate for railway economic regulation as a means for enabling investment in SADC regional railway corridors.

Method: Literature review on global best practices on regulation that induces transport and infrastructure sector investment, and a market research study on railway corridor investment policy assertions and Economic Regulation of the Regional Railway Corridor for Investment.

Results: Current SADC regional railway corridor markets do not encourage steady or sustainable investments and there is a need for further exploration on more investment subsidies and crowding-in on intergovernmental agreements for pertinent development.

Conclusion: Attracting investments into a railway corridor market is an aspect of economic regulation, which necessitates the establishment of market confidence, predictability, and transparency, as observed in Brazil. The legislative provisions, market access codes, and incentives as implemented in the USA, Europe, Australia, and Japan are also crucial investment inducement.

Contribution: The articles presents a profound approach to regional railway corridor investments consideration as it puts to questions the current practice of isolated sovereign attempts. It advocates for joint intergovernmental effort for sustainable and competitive regional railway corridor investments.


Keywords

regional railway corridor; railway economic regulation; investment; transport policy; subsidies; economic rents

JEL Codes

L51: Economics of Regulation; L52: Industrial Policy • Sectoral Planning Methods; L92: Railroads and Other Surface Transportation; L98: Government Policy; O18: Urban, Rural, Regional, and Transportation Analysis • Housing • Infrastructure; O19: International Linkages to Development • Role of International Organizations; O55: Africa

Sustainable Development Goal

Goal 9: Industry, innovation and infrastructure

Metrics

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