Private trains prepare for Transnet rail network as monopoly nears end

Transnet, South Africa's state-owned freight railway monopoly, is set to transition to a private sector-led model by the end of 2026. Moshe Motlohi, CEO of Transnet Rail Infrastructure Manager (Trim), revealed that private rail companies will begin operating on the network in the coming months, after being awarded rail slots on a conditional basis.

These companies need to pass tests and assessments with SA's Rail Safety Regulator to ensure their rolling stocks meet Transnet's infrastructure standards and safety requirements. Two companies are expected to run test trains on the rail network by the end of 2025, gradually increasing their usage of awarded rail slots. Motlohi anticipates a third company joining before the end of February 2027.

The private sector's involvement aims to improve efficiency and reliability in South Africa's economy, which relies heavily on the rail network for transporting iron ore, coal, and other commodities. The government estimates that R70 billion in investments are needed over the next five years to upgrade Transnet's underperforming rail infrastructure, which has seen a decline in cargo volume due to mismanagement, theft, and vandalism.