South Africa’s passenger rail network is showing signs of recovery after years of decline, while the government is pushing ahead with reforms aimed at revitalising freight rail and modernising the country’s transport system.
However, Transport Minister Barbara Creecy has warned that years of underinvestment in logistics infrastructure continue to pose a risk to the country’s economy, with neighbouring countries increasingly positioned to benefit from South Africa’s weaknesses.
Delivering the opening address at the 2026 Southern African Transport Conference on Monday, Creecy said the government’s transport reform programme is focused on rebuilding rail, improving freight movement, embracing digital transformation, and supporting the country’s energy transition.
She cautioned, however, that transport inefficiencies have consequences that extend far beyond the sector itself.
“These disruptions ripple through passenger journeys, freight movements, and the efficiency of supply chains that support our economy. When transport faces disruption, market efficiencies are compromised, and the sector’s capacity to add value to goods, to jobs, and to social well-being is undermined,” she said.
Creecy said South Africa’s logistics challenges have become increasingly significant after years of declining rail and port performance.
“In the South African context, years of under-investment in logistics infrastructure and the post-pandemic downturn in rail and port performance have led to increased competition from our neighbours, who threaten to capitalise on our logistics vulnerabilities.”
She said rebuilding rail remains at the centre of the government’s transport agenda, describing it as critical to restoring the country’s freight logistics system.
“Our ambitious reforms in the rail space seek to re-establish rail as the backbone of the freight logistics system,” she said.
According to the minister, increasing the use of rail will not only improve freight efficiency but also reduce pressure on the country’s roads.
“Increased utilisation of rail transport enhances road safety, decreases congestion on our roads, reduces wear and tear on road surfaces and, critically, is responsible for lower CO2 emissions.”
As part of the reforms, Creecy confirmed that 11 private Train Operating Companies (TOCs) were approved in March to access South Africa’s rail network, with operations expected to begin in April 2027.
She said the operators would invest their expertise and capital into rail operations while the rail infrastructure would remain publicly owned.
“These TOCs will bring their expertise and capital to rail operations, whilst the network will remain state-owned and belong to the people of South Africa.”
The government expects the initiative to contribute towards its target of moving 250 million tonnes of freight on the Transnet rail network by 2030.
Creecy also pointed to progress in restoring passenger rail services following the widespread vandalism and service disruptions experienced during and after the Covid-19 pandemic.
She said 35 of South Africa’s 40 priority rail corridors have been recovered over the past two years, while passenger numbers have increased substantially.
“In the 2020/21 financial year, in the immediate aftermath of the Covid pandemic and widespread vandalism and destruction of rail infrastructure, the Passenger Rail Agency of South Africa (PRASA) recorded 10 million passenger trips. By the end of the 2025/26 financial year, 101 million passenger trips were recorded.”
Government aims to increase annual passenger trips to 600 million by the 2030/31 financial year, restoring usage to pre-pandemic levels.
Creecy said the rollout of the locally manufactured Isitimela Sabantu, or “People’s Train”, on restored rail corridors forms part of the government’s efforts to improve affordable public transport.
“The provision of passenger rail to working-class South Africans is a socioeconomic imperative.”
Beyond rail, Creecy said transport reform must support South Africa’s transition to a greener and more digitally enabled economy.
She highlighted projects including the Ngqura Liquid Gas Terminal, development of the proposed Boegoebaai Port, green hydrogen initiatives, and sustainable aviation fuels as examples of transport’s growing role in the country’s energy transition.
She also announced plans to create a single digital platform that will bring together online permitting services across the transport sector.
“Underpinning our current reform agenda is the notion that we cannot continue with a business-as-usual approach to the challenges that we face. If we do not adapt to the current geopolitical realities with which we are confronted, we will be left behind.”
Creecy further said delivering meaningful transport reform would require continued cooperation between government, industry, and investors.
“The road ahead will demand steadfast leadership, prudent policy, and sustained investment. With your partnership, we can deliver a transport future that is robust against uncertainty and beneficial to every citizen.”
