Private companies will soon be allowed to run freight services on the state-owned Transnet network.
Transport Minister Barbara Creecy announced that 11 out of 25 applicants have been approved to move to the contracting stage, giving them access to operate on the network.
While most of the names remain undisclosed, local logistics company Grindrod confirmed it had secured operating rights.
New slots on six major rail corridors
The approved operators will be allocated slots on 41 routes across six key freight corridors. These cover bulk commodities such as coal, chrome, manganese, iron ore, sugar, fuel and containers.
To qualify, private companies must obtain safety permits, ensure their rolling stock is ready for service, and have arrangements in place for offloading at ports.
Slot contracts will run for periods ranging from one to 10 years.
Creecy stressed that the reform is designed to grow overall freight capacity rather than undercut Transnet.
“The companies are not cannibalising Transnet freight, they are adding capacity to what Transnet Freight is already carrying,” Creecy explained.
The government expects the new entrants to shift an extra 20 million tonnes of goods annually from 2026/27.
By 2029, it aims to raise total rail volumes to 250 million tonnes per year. Coal exports alone could increase by around 10 million tonnes in the next three years.
Transnet under pressure
The move comes at a time when Transnet is struggling to meet demand.
Years of underinvestment, equipment shortages, cable theft and vandalism have eroded state-owned rail’s reliability.
Freight volumes fell to 152 million tonnes in 2023/2024, a steep drop from 226 million tonnes just six years earlier.
Government has already extended R149 billion in guarantees to support Transnet this year, while the company has requested a further R35 billion for infrastructure upgrades.
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