Johannesburg, South Africa — Transport Minister Barbara Creecy has announced the approval of 11 private freight operators to run on Transnet’s rail network, marking a significant shift in South Africa’s rail sector. Speaking at the African Rail Conference, Creecy emphasized that the reforms introduced by Transnet over the past two years represent the most substantial changes to the country’s rail sector in a century. Transnet has authorized these private operators, a move intended to improve efficiency and promote economic growth.
The newly approved train operating companies (TOCs) are set to commence operations on Transnet’s network, aiming to enhance the sector’s economic and operational efficiency.
The government’s goal is to increase the movement of freight on the Transnet rail network to 250 million tonnes by 2030. Transnet, the national rail company, has faced operational challenges and inefficiencies in the past, prompting this reform. Minister Creecy highlighted the potential for economic growth, job creation, and sustainability through these reforms.
The introduction of private operators is seen as a pivotal step in transforming the sector.
The successful TOCs, all based in South Africa, were among 25 companies that applied between December 2024 and February 2025.
The move is expected to boost freight movement, helping to close the current 90 million ton gap and add 20 million tons of freight per year once operations begin.
The Democratic Alliance (DA) has expressed concerns, suggesting that the partial opening of Transnet’s freight rail network is not sufficient to address South Africa’s logistics crisis.
The DA has called for the full concessioning of key freight rail corridors to private operators.
The establishment of the Transnet Rail Infrastructure Manager (TRIM) in November 2024 was a critical step in this process, enabling Transnet to focus on maintenance and revitalization of the rail infrastructure while third-party operators increase capacity and volumes of tradable goods and services.
As private operators prepare to take over, the focus will be on the outcomes of this transformative move.
The success of the reforms will be measured not only in terms of increased freight movement but also in job creation and the overall impact on the South African economy.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: enca
Source: Nokuthula Khanyile
