QUESTION $1$

$[36$ MARKS$]$

The Rail System in South Africa is at a major crossroad. Identify and elaborate on the factors,

stemming from the evolution of the regulatory environment, that contributed to the current

predicament of Transnet Freight Rail. On the basis of your own analysis, make a

recommendation that would re$-$establish the rail system as a key surface transport operator in

South Africa.

QUESTION $2$

$[36$ MARKS$]$

The rail industry poses a number of specific challenges for transport economists and

regulators. Campos and Cantos, in their paper "Changes in the Global Rail Industry". Identify

six challenges that make rail regulation complicated. Identify and elaborate on the nature and

extent of the challenges.

QUESTION $3$

$[36$ MARKS$]$

Categorise the inherent advantages and disadvantages of rail transport relative to road

transport from a freight perspective. Elaborate on the impact that deregulation of the Transport

Market in South Africa had on the relative competitiveness of rail versus road transport.

Identify and motivate the remedial measures you would propose to ensure that both rail$-$ and

road transport in South Africa can, in future, co$-$exist

successfully.

QUESTION $4$

$[36$ MARKS$]$

Identify and discuss ownership options that the South African Government can consider to

remedy the sustained operational$-$ and financial under$-$performance of Transnet Freight Rail.

On the basis of your research, make a recommendation supported by conclusions from your

research.

QUESTION $5$

$[36$ MARKS$]$

In $1980$ United States Congress passed reforms to place financially embattled US railway

companies on a sound financial footing. Amongst other preceding legislation, the Staggers

Rail Act was signed by President Carter on October $14,1980.$ Identify the major reasons for

the financial crises and analyse whether the interventions proposed by the act were able to

address the immediate crises. Review the consequences of the act in the following $40$ years.