Current Edition >> Archives Section >> Leading Stories >> 16-31 July 2005

Deadlock on railway siding network strangles Welkom industrial area

• Johann Dannhauser

A deadlock ensuing over the past decade on the railway siding network in Welkom's Voorspoed Industrial Area has brought development in the area almost to a standstill.
According to a letter addressed by the Goldfields Chamber of Business to the Executive Mayor of Matjhabeng Local Municipality and circulated to the Free State Business Bulletin as a member of the Chamber, the railway siding network has not been functional and has fallen into an advanced state of disrepair. The effort to sell the railway complex over years has failed, mainly because the Matjhabeng Council has purportedly renegated on negotiations involving Spoornet.
The railway network belongs to the Municipality, except the main line running through the area to the gold mines. The site owners have to pay a levy to the Municipality irrespective of whether they are actually served by a siding or not. These levies have legally to be utilized to maintain the siding network, but although the levies have been paid for years, the Municipality seems to have channeled the funds for other purposes.
As a result industrial owners have stopped largely with payment of the levies, but the Municipality still hold them accountable and would not allow any selling of industrial sites without levy arrears being paid up in full. This in turn strangles property prices and prospective new investments in the area.
A further complication is that the dilapidated condition of the siding complex and the area not being fenced properly have given rise to rampant crime and easy space for criminals – circumstances which could be addressed once proper control in the area has been established.
The Goldfields Chamber has proposed selling of the siding complex as a solution, but negotiations have stalled time and again with the Municipality, according to the letter by the Chamber.
The Exco of the Chamber has resolved on 14 June 2006 to request the Executive Mayor of Matjhabeng permission to sell and transfer the property in question, “failing which we shall be compelled to take legal action in this matter at the cost of your Council.”
The Free State Business Bulletin has contacted the media officer of the Executive Mayor of Matjhabeng, Ms. Mathabo Mokabo, telephonically and by email for comments on the representations by the Chamber, but on going to press no response has been received.

Photo: Image of the dilapidated railway siding network in Voorspoed Industrial Area, Welkom.