South Africa’s freight rail sector is on the brink of its biggest transformation in decades, with 11 private train operating companies now cleared to access the country’s mainline rail network.
Image used for illustrative purposes/Sherise Van Dyk/Unsplash
The agreements, officially concluded with the Transnet Rail Infrastructure Manager (TRIM), mark a major milestone in government’s efforts to revitalise rail freight and ease pressure on the country’s roads and ports.
According to Engineering News, the approved operators are expected to inject an additional 24 million tonnes of freight capacity into the network across coal, manganese, fuel, container and general freight routes. Some services could begin operating before the end of 2026, while most are expected to roll out during 2027.
The companies granted access include ARC South Africa, Barberry, Grindrod, Interlinks, IRACEMA, Menar, Minrail, Motheo Logistics, Sharp Logistics, The Railway Corporation and TLD Marine, which includes shipping giant MSC as a participant.
For years, South Africa’s rail infrastructure has been dominated by Transnet Freight Rail, while declining efficiency, theft, vandalism and maintenance backlogs pushed more freight transport onto already congested roads. The introduction of private operators is intended to create a more competitive and efficient rail system while increasing overall freight volumes.
Speaking at the announcement ceremony in Sandton, Transnet CEO Michelle Phillips described the signing of the access agreements as a “significant milestone” in the country’s rail reform programme.
TRIM CEO Moshe Motlohi acknowledged that operators would enter a network still facing operational challenges, but said improvements to infrastructure and signalling systems are underway. The Department of Transport is also preparing an updated Network Statement Version 4, aimed at refining slot allocation and opening the network to even more operators in future.
Government has set an ambitious target of increasing freight rail volumes to 250 million tonnes by 2030, up from current levels of below 180 million tonnes. Public investment into rail and port infrastructure is also accelerating, with billions already approved for upgrades to strategic freight corridors.
Transnet further confirmed plans to establish a rolling stock leasing company, known as LeaseCo, which would allow operators to lease locomotives and wagons instead of purchasing them outright. The State-owned entity has reportedly allocated 500 locomotives and 17 000 wagons to the initiative.
Industry observers say the move could help restore confidence in South Africa’s logistics network while improving export efficiency for key sectors such as mining, agriculture and manufacturing. It may also reduce heavy truck traffic on national roads over time, easing congestion and infrastructure strain.
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