South Africa’s Transport Ministry Expands Rail Network: Minister Creecy Approves 11 New Operators

In a bold step toward revitalizing South Africa’s rail system, Transport Minister Barbara Creecy has greenlit 11 new train operating companies, marking a pivotal moment in the nation’s rail reform journey. Announced during a media briefing on Friday, this move is set to boost efficiency, sustainability, and economic growth while securing and creating jobs.

The selection process, managed by Transnet’s Rail Infrastructure Manager (TRIM), saw 25 companies vie for network access. After a rigorous and transparent evaluation, 11 companies emerged successful, now advancing to negotiations and contracting. Creecy detailed the allocations across key corridors:

• North Corridor: Six new operators will manage 15 routes, transporting coal and chrome.

• Iron Ore Corridor: One new operator will handle a single route for iron ore.

• Cape Corridor: Two operators will cover two routes for manganese.

• North East Corridor: Six operators will manage 16 routes, moving coal, chrome, magnetite, fuel, and containers.

• Central Corridor: One operator will oversee two routes for coal, containers, and manganese.

• Container Corridor (Durban): Four operators will manage five routes for containers, coal, and sugar.

Creecy emphasized the transformative potential, projecting that these operators will add 20 million tonnes of freight annually starting in the 2025/27 financial year. This aligns with the government’s ambitious goal of shifting 250 million tonnes of freight to rail by 2029, easing road congestion and boosting logistics efficiency.

A cornerstone of the reform is investment in rolling stock. Creecy highlighted that the National Rail Policy, approved in March 2022, encourages private-sector participation while keeping infrastructure state-owned. “This policy could unlock up to R100 billion in new investments by fostering rolling stock leasing companies and operator investments,” she said, signaling a major opportunity for modernizing rail assets.

The minister underscored the fairness of the process, noting that Transnet’s evaluations adhered to strict standards of transparency. Successful companies will receive conditional award letters, requiring them to meet conditions such as obtaining Railway Safety Regulator permits, ensuring rolling stock readiness, and securing port offloading capacity. Contracts will range from one to 10 years, with operations starting once conditions are met.

Looking ahead, Creecy announced that TRIM will open applications for ad hoc allocations in the 2025-26 timetable next week. The Department of Transport will also release Volume 4 of the Network Statement for the 2026/27 financial year, outlining further opportunities.

“This is more than just rail slots,” Creecy said. “It’s a leap toward a future where our railways fuel economic growth and create thousands of jobs, driving South Africa forward.

”This will revamp rail strategy positions South Africa to strengthen its logistics backbone, reduce reliance on road transport, and unlock new economic potential through a modernized, inclusive rail network.