Traxtion receives first locomotives at Port of Durban in $207 million rail investment

Traxtion has taken delivery of eight Wabtec C28 locomotives at the Port of Durban, marking the first phase of its R3.4 billion ($207 million) fleet expansion as South Africa moves to open its rail network to private operators. The delivery coincides with reforms that grant third-party access to the state-owned rail system, intensifying competition in the country’s freight market.

First delivery launches fleet modernization

The shipment from New Zealand is the first of four deliveries planned over the next two years to bring 46 locomotives into the country. The initial units are heading to the company’s technical hub in Pretoria, where crews will begin overhauls and upgrades in September 2026 before placing them into commercial service.

The overall investment splits the capital between locomotives and rolling stock. Traxtion committed R1.8 billion ($109.5 million) to buy and refurbish the 46 locomotives, alongside R1.6 billion ($97.5 million) to purchase 920 freight wagons. Funding for the fleet expansion follows a R1.5 billion ($91.2 million) equity injection backed by Harith, Stanlib and Standard Bank.

Regulatory clarity unlocks private rail investment

Traxtion Chief Executive Officer James Holley said fixed investments of this size depend heavily on steady cooperation between state authorities and private companies. He noted that expanding rail capacity creates ripple effects through the broader economy by protecting industrial jobs, easing port delays and keeping regional supply networks running smoothly.

Holley added that long-term investors need clear regulatory ground rules before committing heavy capital to heavy rail infrastructure. He expects the government’s upcoming release of the Version 4 Rail Network Statement to establish clear access terms, which will allow operators to secure additional debt financing.

Logistics reform opens state railways 

The delivery comes as Transport Minister Barbara Creecy pushes to shift South Africa’s logistics policy from white papers into everyday operations. Under the plan, private operators can rent slots on state-owned rail corridors that were long off-limits to commercial competitors.

Pretoria wants to boost national freight transport from roughly 160 million tonnes a year to 250 million tonnes through private investment. Traxtion projects its new fleet will add about 4.5 million tonnes of annual capacity once all 46 locomotives hit the rails.