Transnet Finally Opens Its Rail Network To Private Operators Amid Mounting Pressure

For decades, South Africa’s rail system has been a lifeline for bulk commodities, from coal and chrome to iron ore and fuel. But in recent years, state-owned Transnet has struggled to keep the wheels turning, leaving industries frustrated and the economy feeling the pinch. Now, in a move many see as long overdue, government has given private operators the green light to run freight trains on the Transnet network.

A Breakthrough For Private Rail

Transport Minister Barbara Creecy confirmed this week that 11 of the 25 companies who applied for access have been approved to move into the contracting phase. While most names remain under wraps, logistics heavyweight Grindrod has already confirmed its inclusion.

These companies will be allocated slots across 41 routes covering six key freight corridors. Contracts will run between one and ten years, and operators will be responsible for ensuring they meet strict safety standards, maintain rolling stock, and secure port offloading arrangements.

Creecy stressed that this is not about replacing Transnet, but rather supplementing its capacity. “The companies are not cannibalising Transnet freight, they are adding capacity to what Transnet Freight is already carrying,” she said.

What It Means For The Economy

The government expects the reforms to shift an additional 20 million tonnes of goods annually from 2026/27. By 2029, total rail volumes could climb back to 250 million tonnes per year, a level not seen in years. Coal exports alone are projected to grow by 10 million tonnes within the next three years.

For industries battered by bottlenecks, cable theft, vandalism and rolling stock shortages, the announcement feels like a lifeline. Mining companies in particular have long lobbied for private access, warning that lost exports hurt both jobs and the national fiscus.

Transnet’s Battle For Survival

The move comes as Transnet grapples with severe operational and financial woes. Freight volumes have plunged from 226 million tonnes in 2017/2018 to just 152 million in 2023/2024. Years of underinvestment and mismanagement have left the rail system fragile, while cable theft and sabotage have compounded delays.

This year alone, government extended R149 billion in guarantees to the company, with Transnet requesting another R35 billion for much-needed infrastructure upgrades.

A Long Road Ahead

Opening the rails to private players is a significant step, but it’s not a magic fix. Without real progress in curbing vandalism, strengthening infrastructure and ensuring fair access, South Africa’s freight network could remain stuck in the slow lane.

Still, for now, the prospect of more trains moving coal, iron ore and containers is a sign of hope for an economy that desperately needs its railways back on track.

Source:The South African 

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