South Africa is advancing the opening of railway freight transport to private sector participation, marking a new phase in logistics reform.
Reform Overview
Announced by Transport Minister Barbara Creecy at the 14th Southern African Railways Association (SARA) International Railway Conference & Exhibition on August 26, 2025:
- Conference Theme: "Transport for Africa's Future - Development of Africa-wide Movement and Economy through Railway Sector Development"
- Venue: Johannesburg (August 26-29)
- Government Policy: Positioning railways as the "backbone" of the transport system
Concrete Progress in Private Sector Entry
Initial Selection Completed (August 22, 2025)
- Selected Operators: 11 private operating companies
- Target Routes: 41 routes across 6 railway corridors
- Operating Period: Up to 10 years
- Next Phase: Moving to negotiation and contracting process with selected operators
Expected Cargo Types
- Coal
- Fuel
- Iron ore
- Chrome
- Manganese
- Sugar
Expected Impact
Freight Volume Increase Targets
- 2026/2027 Fiscal Year (April 2026 - March 2027): Expected increase of 20 million tons annually
- Government Target by 2029: Achieve 250 million tons of railway freight transport annually
Minister Creecy's Vision
"This is an important step on the railway reform journey. It will promote comprehensive growth of freight railways, ensure job retention and creation, and realize a more efficient, reliable, and sustainable railway system."
National Rail Master Plan
- Status: In final coordination phase
- Planning Period: Next 30 years
- Positioning: Framework to guide transformation of South Africa's railway sector
Business Community Response
Comments from Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso:
- Evaluated progress as "a step aligned with the plan we've been advocating through the National Logistics Crisis Committee (NLCC)"
- Emphasized implementation importance: "The real test is ahead. We cannot stall like the Durban Container Port concession, which remains stuck in court after two years"
South Africa's logistics infrastructure reform is entering a new phase with private sector participation, with expectations for contribution to economic growth.