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There seems to be light at the end of the tunnel, with Transnet’s new strategy to create a competitive environment on rail, and inviting private companies to participate in the sector while government remains the owner of the infrastructure.
The rail and port economy has been hard hit over the years reducing potential revenue for Transnet and the country. Since then, the parastatal was tasked to come up with a turn-around strategy to make the entity viable again.
The Minister for Transport Ms Barbara Greecy, announced last week Friday, 22 August 2025; that Transnet, through its operating division Transnet Rail Infrastructure Manager (TRIM), has completed the adjudication process to select new Train Operating Companies (TOCs).
She said out of the 25 that applied, 11 were selected as they met the necessary requirements and will now proceed to the next stage of negotiations and contracting.
“This is a significant step in our rail reform journey and makes open access to freight rail a reality in our country. It will contribute to a more efficient, reliable and sustainable rail system that can promote inclusive growth and ensure job retention and job creation,” said Minister Greecy.
Greecy explained that the initial allocations, on a total of 41 routes and six (6) corridors, are as follows: • North Corridor: six new entrants, 15 routes for transportation of coal and chrome. • Iron Ore Corridor: one new entrant, one route for transportation of iron ore. • Cape Corridor: two new entrants, two routes for transportation of manganese. • Northeast Corridor: six new entrants, 16 routes for transportation of coal, chrome, magnetite, fuel, containers. • Central Corridor: one new entrant, two routes for transportation of coal, containers (manganese). • Container Corridor: four new entrants, five routes for transportation of containers, coal, sugar.
“The Transnet Rail Infrastructure Manager (TRIM) estimates that the new Train Operating Companies (TOCs) will carry an additional 20 million tonnes of freight per annum from the 2026/27 financial year. This will supplement Transnet Freight Rail’s (TFR’s) forecasted volumes and contribute to Government’s target of increasing freight moved by rail to 250m tons per annum by 2029.
The Rail Policy encourages rolling stock investment by the operating companies and the establishment of the rolling stock leasing companies by both state-owned companies and private entities. This could be a key intervention for revitalising rolling stock and unlock as much as R100billion in new investments,” she said.
