Transport Minister Barbara Creecy has announced a major step forward in South Africa’s long-awaited rail reform, confirming that 11 train operating companies (TOCs) have been approved to run on Transnet’s rail network.
Speaking on Friday, Creecy said the move represents more than just the allocation of rail slots. “It is a step toward a future where our railways drive economic growth, create thousands of jobs, and ensure sustainability,” she said.
The successful operators – all domiciled in South Africa – were among 25 companies that applied between December 2024 and February 2025. While the names have not all been revealed, Grindrod Limited confirmed it had secured access, hailing the development as a milestone in private sector participation.
The Transnet Rail Infrastructure Manager (TRIM) expects the new operators to move 20 million tonnes of freight annually from 2026/27. This will supplement Transnet Freight Rail’s projected 160 million tonnes, supporting government’s goal of reaching 250 million tonnes by rail per year.
Creecy said rail reform will unlock rolling stock investment, potentially drawing R100 billion in new capital. At the same time, government is seeking urgent funds to repair Transnet’s fragile infrastructure. Requests of R16.4 billion (submitted in July) and R18.6 billion (due in October) have been made to the National Treasury.
“This is not about privatising Transnet,” Creecy stressed. “Globally, rail reforms have allowed private operators to use state-owned tracks. Transnet will remain a network owner and revenue receiver, while still running its own freight business.”
The initial allocations cover 41 routes across six corridors, including coal, chrome, manganese, iron ore, fuel, sugar, and container transport – with the Durban Container Corridor opening to four private operators.
Creecy said the reform will improve efficiency, lower costs, and enhance rail’s competitiveness as a greener freight solution. But she also admitted that without urgent investment, the system remains vulnerable.
“This is about bringing our system in line with global practice while ensuring South Africa’s economic assets remain in public hands,” she said.
The latest SA Trucking News straight to your inbox!
Do you have more on this story? Click to WhatsApp us. Anonymity guaranteed.
