Transnet seeks $2.2 billion from South Africa Treasury for projects through 2030 

South Africa’s government is seeking fresh funding to help restore the country’s struggling freight rail and ports network, with Transport Minister Barbara Creecy saying state-owned freight and logistics company Transnet plans to request as much as R35 billion ($2.2 billion) from the National Treasury for infrastructure projects through 2030. 

“We are going to put in requests to the National Treasury’s Infrastructure Budget Facility for about R35 billion ($2.2 billion), for projects going out to 2030,” Creecy said in an interview on Thursday. 

The proposed allocation would come on top of the R13 billion ($803.4 million) that Transnet has already secured from the Budget Facility for Infrastructure. Of that amount, R11.2 billion ($692.2 million) has been directed toward restoring the country’s iron ore and coal rail corridors and improving operations at Durban’s container terminal.

Rail network takes priority 

The additional funding would help pay for rail upgrades and new equipment as Transnet works to recover from years of operational setbacks, aging infrastructure and corruption that weakened one of South Africa’s most important state-owned companies. 

Improving the freight network has become a priority for the government as transport bottlenecks continue to weigh on economic activity. South Africa’s economy has expanded by less than 1% a year on average for more than a decade, with business groups repeatedly pointing to unreliable rail services and congested ports as major obstacles to growth. 

Creecy said Transnet has recently concluded rail access agreements with 11 private train operating companies that have been allocated slots on its core rail network. 

“Transnet will probably have to spend about R35 billion ($2.2 billion) to upgrade railways so that the new network operators have a chance,” she said. 

The introduction of private operators is expected to add about 24 million metric tons of freight capacity to the rail system. However, Creecy said the expansion will take time as operators acquire rolling stock and Transnet completes the necessary infrastructure upgrades. 

“I expect the hoped-for increase of 24 million tons could take place in around 18 months,” she said.

Ports target greater efficiency 

Beyond rail improvements, Transnet is also pursuing measures to improve operations at the country’s ports. These include plans to introduce a privately operated floating dock at the Port of Cape Town to expand ship-repair capacity. 

The company is also preparing to roll out a port community system that would bring shipping agents, cargo owners and port authorities into shared operations centers to improve coordination and reduce delays. 

Creecy said the initiative could be particularly valuable for South Africa’s citrus industry, which faces tight export schedules during the windy season at the Port of Cape Town. 

“This would really be helpful for the citrus fruit sector, which usually needs to ship out containers during a potentially very windy season.” 

Transnet operates South Africa’s freight rail network, commercial ports and petroleum pipeline infrastructure. The company plays a central role in moving bulk commodities, manufactured goods and fuel across the country, making its recovery a key part of the government’s efforts to strengthen trade, exports and long-term economic growth.