Transport Minister Barbara Creecy has approved the selection of new train operating companies, a major milestone in South Africa’s rail reform programme.

Speaking at a media briefing on Friday, Creecy said the process “will contribute to a more efficient, reliable, and sustainable rail system that can promote inclusive growth and, of course, ensure job retention and future job creation.”

Through Transnet’s operating division, the Transnet Rail Infrastructure Manager (TRIM), 25 companies applied for access to the rail network. Eleven met the necessary requirements and will proceed to the next stage of negotiations and contracting. Creecy outlined the allocations, saying:

“On the North Corridor, there will be 6 new entrants on 15 routes for the transportation of coal and chrome. On the Iron Ore Corridor, there will be 1 new entrant and 1 route for the transportation of iron ore. On the Cape Corridor, there will be 2 new entrants and 2 routes for the transportation of manganese.

“On the North East Corridor, there will be 6 new entrants, 16 routes for the transportation of coal, chrome, magnetite, fuel and containers. On the Central Corridor, there will be 1 new entrant and 2 routes for the transportation of coal and containers, including manganese. On the Container Corridor, which is the Durban route, there will be 4 new entrants, 5 routes for the transportation of containers, coal and sugar,” she said. 

Creecy highlighted the broader impact, stating that the new train operating companies are expected to carry an additional 20 million tonnes of freight per annum from the 2025/27 financial year, supplementing Transnet Freight Rail’s forecasted volumes and aiding the government’s target of moving 250 million tonnes of freight by rail by 2029.”

On investment in rolling stock, she noted: “The rail policy encourages rolling stock investment by the operating companies and the establishment of the rolling stock leasing companies by both state-owned and private entities.

“This could be a key intervention for revitalising rolling stock and our estimates are that it could unlock as much as 100 billion rand in new investment.”

The rail reform initiative follows the National Rail Policy approved by Cabinet in March 2022, which allows private sector participation while keeping infrastructure state-owned.

Creecy explained the role of the policy in ensuring transparency: “The evaluation process, according to Transnet, has been rigorous and was conducted in full compliance with the standards of fairness and transparency.”

New entrants who have met the requirements will receive conditional award letters outlining award conditions, including the need to complete the Railway Safety Regulator (RSR) permit applications, rolling stock readiness, securing port offloading capacity and other operational processes. Durations of the allocations range from one to 10 years, and operating companies can commence with operations once the relevant conditions have been addressed, said Creecy.  

Creecy also announced that TRIM will open applications next week for Ad hoc allocations in the 2025-26 timetable period and said the Department of Transport will later announce Volume 4 of the Network Statement for the 2026/27 financial year.

“Today’s announcement is not just about the allocation of rail slots. It is a step towards a future where our railways drive economic growth and of course create many, many thousands of jobs.”

hope.ntanzi@iol.co.za

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