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Freight sector welcomes rail reform to ease SA’s transport bottlenecks

South Africa's rail reform ends Transnet's monopoly with 11 private operators approved, aiming to increase freight volumes by 90 million tons annually and attract R100 billion in private investments.

  • On August 26, 2025, Transport Minister Barbara Creecy announced that Transnet has finalized its selection of 11 new train operating companies to participate in South Africa's freight rail network.
  • The process considered 25 applications submitted over a three-month period spanning late 2024 to early 2025 and seeks to enable private sector involvement in Transnet without transferring ownership.
  • Two new operators were allocated to the Cape Corridor to manage manganese routes from Northern Cape mining regions to the Port of Saldanha, a key export hub that benefits mining, agriculture, and manufacturing sectors.
  • Creecy stated the reform will expand freight volumes, improve efficiency, lower costs, and potentially unlock up to R100 billion in private sector investment to modernise the rail system.
  • The Western Cape Government urged all partners to urgently implement the reforms, which are expected to drive economic growth, create jobs, ease road congestion, and enhance South Africa‘s trade competitiveness.
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Financial Watch broke the news in on Sunday, August 24, 2025.
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