Johannesburg: As South Africa implements the national rail reform programme, the private sector will play a key role in investing in rail and port operations, while ensuring that the infrastructure remains State-owned. ‘The current state of Transnet’s rail infrastructure is cause for concern for freight operators and cargo owners alike. The state has limited availability of resources for major refurbishment. This makes private sector investment critical,’ Minister of Transport Barbara Creecy said on Tuesday in Johannesburg.
According to South African Government News Agency, earlier this year, the Minister launched an online Request for Information (RFI) to enable an environment for private sector participation and enhanced investment in rail and port infrastructure and operations. The RFI received overwhelming interest with 162 formal responses from the private sector. Creecy explained that immediate sources of finance for rehabilitating Transnet’s rail network include Transnet’s current infrastructure budgets, two applications to National Treasury’s Budget facility for infrastructure, and a joint funding and collaboration framework allowing current customers to assist without adding to Transnet’s debt.
Creecy addressed the Southern African Railway Association (SARA) Rail Conference and Exhibition, which plays a pivotal role in advancing and modernising railways across the continent. She announced that later this year, Transnet will issue Requests for Proposals and begin the formal procurement process, likely using a concessioning model, while emphasizing that the network will remain in state ownership.
Last week, the Minister announced that eleven private sector operators met initial application criteria and have been allocated a total of 41 routes across six corridors, for operating periods of up to ten years. The Transnet Rail Infrastructure Manager (TRIM) estimates that the new Train Operating Companies (TOCs) will carry an additional 20 million tonnes of freight annually from the 2026/27 financial year, supplementing Transnet Freight Rail’s (TFR’s) forecasted volumes and contributing to government’s target of increasing freight moved by rail to 250 million tons per annum by 2029.
Creecy highlighted the importance of reforms such as the separation of infrastructure and operations at Transnet, strengthening the Railway Safety Regulator, and expanding passenger rail through the Passenger Rail Agency of South Africa’s (PRASA) revitalised services. These reforms are setting important examples for the continent.
Government is currently finalising the National Rail Master Plan (NRMP), a comprehensive framework to guide the transformation of South Africa’s rail sector over the next 30 years. ‘When implemented, our Master Plan would complement the Southern African Development Community (SADC) Regional Rail Master Plan,’ Creecy noted.
In the passenger rail space, PRASA is restoring routes, introducing modern train sets, and improving safety. The agency has successfully revived 35 out of 40 corridors, achieving an unaudited figure of 77 million passenger journeys for the last financial year. In September, they will launch an RFI for passenger rail to determine investment interest in commuter rail, aiming to reach 600 million annual passenger journeys on the PRASA network within five years.
The expansion of the rail sector includes ensuring green, climate-resilient, and sustainable railways. ‘Electrification, hybrid locomotives, and circular economy practices will help us meet our climate goals. At the same time, we must invest in our people – training engineers and logistics practitioners, technicians, managers, and innovators who will design and operate the railways of the future,’ the Minister concluded.