South African government takes steps to restore rail freight capacity

South Africa is advancing reforms and investment aimed at restoring the performance of its rail transport system, with a focus on improving freight capacity and strengthening economic infrastructure.

Speaking in the National Council of Provinces in Cape Town, Deputy President Paul Mashatile said the government has committed significant resources and policy reforms to address the decline in rail operations and improve infrastructure performance.

Mashatile made the remarks while responding to questions for oral reply in the council regarding the state of the national rail network and the measures being taken to restore services.

“We have prioritised stronger intergovernmental coordination, improved planning and more effective execution across the spheres of government to restore the performance of critical economic infrastructure, including rail,” he said.

According to Mashatile, the government is engaging several departments, including the Department of Public Works and Infrastructure, the Department of Transport, the Department of Water and Sanitation and the Department of Cooperative Governance and Traditional Affairs to strengthen the upgrading and protection of strategic infrastructure that supports economic activity and job creation.

Mashatile said Finance Minister Enoch Godongwana had allocated R21.9 billion through the budget facility for infrastructure to support major projects, including upgrades to coal and iron ore corridors operated by Transnet.

Meanwhile, Transnet’s rail infrastructure manager, working with the Department of Transport and strategic partners, is focusing on restoring the productive use of rail infrastructure and associated assets that have been underutilised, vandalised or inactive for extended periods.

Mashatile said the work includes reviving rail services that support agriculture, mining, manufacturing hubs and rural trading towns that rely on rail connectivity.

Structural reforms are also being implemented under Operation Vulindlela, aimed at modernising the rail and logistics sector. These reforms include opening the rail network to third-party operators to improve efficiency and competition.

Responding to a supplementary question regarding the concessioning of rail lines, Mashatile said the government has begun implementing the National Rail Policy 2022.

He said the process has moved into the implementation phase, including the design and operational rollout across rail corridors. According to Mashatile, about 11 major freight companies have been enlisted as part of the process, with contracts being finalised before work begins on these corridors.

The government plans to invest R500 billion in infrastructure over the next three years, including R120 billion allocated for transport infrastructure such as rail rehabilitation, port efficiency upgrades and road network maintenance.

Passenger rail recovery is also being implemented through the Passenger Rail Agency of South Africa (PRASA). Mashatile said that by the end of 2025, PRASA had commissioned 35 of its 40 passenger corridors and recorded an audited annual figure of 77 million passenger journeys on long-distance rail services.

PRASA’s long-distance passenger division plans to reintroduce several mainline passenger routes in the 2026/27 financial year, subject to funding availability and locomotive readiness. These include Johannesburg–Durban, Johannesburg–Queenstown, East London–Johannesburg, Cape Town–Johannesburg, Johannesburg–Musina and Cape Town–Queenstown.