Business Report

WATCH: Minister Ntshavheni unveils plan to expand rail freight capacity by 20 million tonnes

Thabo Makwakwa|Published

Minister Khumbudzo Ntshavheni to brief media on Cabinet meeting outcomes

Image: GCIS

Minister in the Presidency Khumbudzo Ntshavheni is briefing Pretoria on the outcomes of the Cabinet meeting held on Wednesday. 

The meeting was set to address essential developments across economic policy, infrastructure projects, and government initiatives in line with the South African government's ongoing commitment to accelerated national progress.

Last week, one of the significant announcements welcomed by the Cabinet related to the country’s freight and logistics sector.

Minister Ntshavheni highlighted a landmark development involving Transnet Rail Infrastructure Manager’s introduction of new Train Operating Companies (TOCs), a pivotal step in implementing South Africa’s Freight and Logistics Roadmap and Rail Policy.

“This is a significant milestone in transforming our rail logistics landscape,” Ntshavheni said. 

“The introduction of third-party access across 41 routes spanning six major corridors is designed to boost rail utilisation, enhance efficiency, and drive down transport costs.”

The Minister elaborated that this strategic move will also generate additional revenue, which will be reinvested into modernising South Africa’s rail network, further strengthening the country's infrastructure backbone.

The newly established companies are projected to increase rail freight capacity by 20 million tonnes annually, starting in the 2026/27 financial year. 

Ntshavheni explained that this expansion is a vital contribution towards the government's larger target of transporting 250 million tonnes of freight by rail each year by 2029.

thabo.makwakwa@inl.co.za

IOL Politics