For decades, South Africa’s freight rail network has operated under the tight grip of a single state monopoly. That grip is now loosening.
Recent announcements from the Department of Transport and Transnet signal a turning point for the country’s logistics landscape, one that could reshape how cargo moves across the nation’s vast corridors.
The news that private train operating companies (TOCs) will finally gain access to Transnet’s rail infrastructure is nothing short of historic.
BusinessTech frames this as the “end of the line for another state monopoly,” while the official statement by Minister of Transport Barbara Creecy confirms that the adjudication process has been completed and 11 TOCs have been conditionally approved to operate across 41 routes and six key freight corridors.
This move is rooted in the National Rail Policy of 2022, which laid the groundwork for third-party participation while keeping infrastructure in state ownership.
It also dovetails with the Roadmap for the Freight Logistics System approved in December 2023, aimed at reducing bottlenecks and improving competitiveness across supply chains.
The first phase has awarded slots across strategic corridors:
This diversification is critical. It means that South Africa is not only moving minerals more efficiently but also enabling containerised and agricultural cargo to benefit from rail.
The reform is promising, but execution will be everything. The conditional awards require operators to secure Railway Safety Regulator permits, demonstrate rolling stock readiness, and align with port offloading capacity. Without these, delays could erode confidence in the reform.
Moreover, the regulatory framework must continue to evolve to ensure fair access, prevent anti-competitive behaviour, and maintain infrastructure quality.
For a country grappling with port congestion, high logistics costs, and declining rail volumes, this reform is a potential game-changer. If managed well, it could restore rail to its rightful place as the backbone of South Africa’s trade and logistics system.
At the same time, it sends an important signal to global investors and trade partners: South Africa is serious about reform, collaboration, and unlocking efficiency in its logistics chain.
