Transnet seeks Private partners to revive 9,098km of South Africa rail

South Africa is opening another major part of its rail network to private investment as Transnet seeks partners to help restore and operate 9,098 kilometers of secondary railway lines. 

Through the Transnet Rail Infrastructure Manager (TRIM), the government has issued a Request for Information seeking interest in the refurbishment, financing, operation, maintenance and possible concessioning of the B-Network.

The network consists largely of low-density branch and feeder lines that connect with the country’s main rail system. 

The move comes as South Africa tries to repair a freight logistics system that has struggled with aging infrastructure, limited capacity and years of underinvestment.

The condition of the rail network has become a major concern for exporters and businesses that rely on efficient links between mines, factories, markets and ports. 

The B-Network could also offer opportunities beyond freight. TRIM said some of the lines have attracted interest for passenger and tourism services because of their smaller operations and different infrastructure requirements.

Transnet opens more rail lines to private sector 

TRIM CEO Moshe Motlohi said private-sector participation in the B-Network would form an important part of efforts to reform South Africa’s freight logistics system.

The information gathered through the RFI will help TRIM design future procurement programmes based on market demand and national rail policy. 

The initiative follows Transnet’s progress in opening the national rail network to private operators. TRIM has concluded Rail Access Agreements with 11 train operating companies, increasing the number of active operators on the network from one to 12.

The new operators are expected to add as much as 24 million tons of freight capacity initially, with the potential to reach 52 million tons over five years.

DA calls for deeper Transnet privatisation 

The Democratic Alliance says the reforms do not go far enough. Earlier this year, the party said it would approach Transport Minister Barbara Creecy to push for full concessioning of key freight rail corridors to private operators. 

DA Deputy Spokesperson on Transport S’bongiseni Vilakazi said allowing private companies to run trains on Transnet’s infrastructure was not the same as giving them responsibility for managing, maintaining and operating the rail lines themselves. 

DA raises concerns over Transnet’s finances

The DA said Transnet’s continued dominance was contributing to delays, capacity constraints and operational failures that cost the economy billions of rand.

It also said the company was being supported by the fiscus, including government guarantees totaling nearly R100 billion($6.19 billion) in the past year alone. 

The party argued that greater private participation could bring additional capital, technical expertise and operational efficiency.

Transnet is South Africa’s state-owned freight rail, ports and pipeline company and is responsible for infrastructure that connects producers and exporters with domestic and international markets. 

The latest RFI gives private investors another opportunity to shape the future of South Africa’s rail network as the government seeks to improve freight capacity, reduce logistics bottlenecks and strengthen the country’s economy.