Business Report

Transnet expands private rail access as 11 operators to add 24m tons of freight capacity

LOGISTICS

Siphelele Dludla|Published

The Transnet Rail Infrastructure Manager on Wednesday successfully concluded Rail Access Agreements with all 11 Train Operating Companies that were allocated slots, marking a major milestone in South Africa’s rail reform journey.

Image: Supplied

South Africa’s rail reform programme has taken a major step forward after the Transnet Rail Infrastructure Manager (TRIM) concluded Rail Access Agreements with 11 Train Operating Companies (TOCs), opening the national rail network to wider private sector participation.

The agreements increase the number of active operators on the rail network from one to 12 across five strategic freight corridors, in a move expected to boost competition and improve rail efficiency.

The newly onboarded operators include ARC South Africa, The Railway Corporation, TLD Marine, MENAR, Sharp Logistics, Barberry, Grindrod, Minrail, IRACEMA, Motheo Logistics and Interlinks. The companies operate across sectors including coal, manganese, fuel, containers and general freight.

According to TRIM, the slot allocations are expected to add 24 million tons of freight capacity to the rail network initially, with the potential to increase to 52 million tons over the next five years. This forms part of South Africa’s broader target of increasing rail volumes from about 180 million tons to 250 million tons by 2030.

TRIM CEO Moshe Motlohi said the development marked a turning point for rail reform in South Africa.

“This milestone represents more than just slot allocation, it signals the creation of a functional and competitive rail marketplace. We have moved from policy design to practical implementation, enabling real private sector participation and investment in rail,” said Motlohi.

The development follows the introduction of the Ad Hoc Slot application process in December 2025, which allows rail operators to apply for network capacity outside the traditional annual allocation cycle.

TRIM said the process has already unlocked new opportunities, including a proposed short-haul freight service between Cato Ridge and Durban aimed at reducing congestion around the Durban port precinct. The service is expected to begin operating in May 2026.

“The Ad Hoc Slot process is a game-changer. It allows operators to respond to real-time demand while maintaining the highest standards of safety, transparency, and efficiency,” Motlohi said.

TRIM said some operators are expected to begin operations before the end of 2026, while others are targeted to become operational during 2027 as onboarding and operational readiness processes continue.

The rail infrastructure manager added that ongoing reforms and improvements to its Network Statement Version 4 are aimed at increasing participation, improving efficiency and attracting further investment into South Africa’s rail sector.

BUSINESS REPORT