Abstract
One of the most durable legacies of the economic policies of twentieth century South Africa is the prevalence of state-owned enterprises (SOEs). In sectors such as water, electricity, rail, harbours, postal services, airways, telecommunications and so forth, a state owned enterprise has historically dominated the market and in many cases still does. Although this nominally gives the state wide-ranging power over the economy, which should be to the advantage of a development-focused economy such as South Africa, in practice this power can be quite limited.The freight rail division of Transnet (Spoornet or Transnet Freight Rail) is widely perceived to be one of the more troubled SOEs currently in operation in South Africa. The paper examines the regulation of this sector, and its impact on wider economic growth.
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