South Africa advances rail reform and continental integration

Minister of Transport Barbara Creecy announced allocations and progress in South Africa’s national rail reform program, including the allocation of 41 freight routes to private operators and publication of network statements by TRIM.

• Main announcement and implementation actions:

  • Allocation: Eleven private sector operators have been allocated a total of 41 routes across six corridors for operating periods of up to ten years.
  • Freight impact and targets: TRIM estimates the new Train Operating Companies (TOCs) will carry an additional 20 million tonnes of freight per annum from the 2026/27 financial year, contributing to Government’s target of increasing freight moved by rail to 250 million tons per annum by 2029.
  • Regulatory and procurement steps: TRIM (established late 2024) published its First Network Statement and the Rail Access Tariff on 20th December 2024; the Fourth Network Statement for 2026/2027 (including the Rail Access Tariff) will be published later this year. Requests for Proposals (RFPs) will be issued later this year to begin formal procurement, likely using a concessioning model; immediate financing sources cited include Transnet infrastructure budgets, two applications to National Treasury’s Budget Facility for Infrastructure, and a proposed joint funding and collaboration framework with current customers.

• Background, passenger rail actions, plans and international steps:

  • PRASA recovery and passenger targets: PRASA has revived 35 out of 40 corridors/sections and reported an unaudited 77 million passenger journeys in the last financial year; a Request for Information (RFI) for passenger rail will be launched in September to assess investment appetite, and the goal is 600 million annual passenger journeys on the PRASA network within five years.
  • Strategic planning and regional integration: The White Paper on National Rail Policy (2022) directs completion of a National Rail Master Plan during this financial year, intended to complement the SADC Regional Rail Master Plan; priorities include corridor evaluation, bankability data, safety/regulation, intermodal links, and embedding health, gender inclusiveness, job creation, and climate awareness into projects.
  • International finance and legal framework: South Africa ratified the Luxembourg Rail Protocol (becoming the 6th State and second African state after Gabon), cited as supporting international financing for the railway sector.

• Event details (from speech):

  • Occasion: 14th SARA International Rail Conference and Exhibition
  • Location: Sandton Convention Centre, Sandton
  • Theme/agenda: “Transporting Africa Forward: Accelerating rail growth to boost mobility and economic opportunity across Africa”
  • Date/time: not specified in the text