South Africa’s freight logistics landscape is undergoing a fundamental shift as Transnet moves to open its rail network to private operators for the first time in decades. The reform introduces an “open access” model that separates infrastructure from operations.
Source: Transnet.
While Transnet will retain ownership and management of the rail network, private train operating companies will be allowed to run their own locomotives and wagons on designated lines, paying access fees for allocated slots. This marks a decisive break from the utility’s long-standing monopoly over freight rail.
The rollout gained momentum in late 2024 with the publication of a Network Statement outlining access conditions, tariffs and technical requirements. Applications from private operators followed, with a group of bidders shortlisted in 2025 to begin negotiations for network access. Initial operations are expected to come online from 2026, focusing on key freight corridors linked to bulk commodities such as coal, iron ore and manganese.
The shift comes at a critical time for South Africa’s logistics sector. Rail volumes have declined sharply over recent years due to infrastructure constraints, operational inefficiencies, cable theft and underinvestment. This has forced a significant portion of freight onto road networks, raising costs for businesses and placing additional strain on national infrastructure.
Opening the network is intended to reverse this trend by injecting private-sector capital, skills and operational efficiencies into the system. Increased competition is expected to improve service reliability, expand capacity and support export-driven industries that rely on dependable rail logistics.
Private rail revival
Government has positioned the reform as part of a broader structural adjustment agenda aimed at revitalising network industries and enabling economic growth.
By adopting a model used in parts of Europe, policymakers hope to create a more dynamic and responsive freight rail system without relinquishing state ownership of strategic infrastructure.
However, the initiative's success will depend on effective regulation, transparent pricing mechanisms and the ability to upgrade and secure the underlying rail network.
Industry stakeholders have also raised concerns around implementation timelines and the complexity of co-ordinating multiple operators on shared infrastructure.
If executed effectively, the reform could mark a turning point for South Africa’s freight logistics sector, helping to restore rail as a competitive backbone of the economy.
