Grindrod Limited, a freight movement and logistics company, will begin transporting coal from South African mines to Mozambique by rail in 2027, marking another step in the opening of Transnet’s freight network to private operators.

The logistics group plans to move about 288,000 metric tons from Mpumalanga to its Matola Terminal during its first year.

The company said it completed a successful test train round trip on Transnet’s North-East corridor on Nov. 2, demonstrating its readiness to begin commercial operations.

The planned shipments will connect South Africa’s coal-producing region with Mozambique’s export infrastructure, giving the company another route to move bulk commodities across Southern Africa.

Private operators enter rail network

Grindrod’s entry follows access agreements signed by Transnet’s rail infrastructure unit with 11 private train operating companies.

The arrangements form part of South Africa’s efforts to introduce private participation into a freight rail system that has struggled with capacity constraints, infrastructure deterioration and persistent operational bottlenecks.

The government expects private operators to add about 20 million metric tons of annual freight capacity, supporting its target of moving 250 million tons by rail each year by 2029.

The reforms are intended to increase competition, improve network utilization and reduce pressure on roads that carry much of the country’s freight.

Mozambique corridor gains importance

The planned service strengthens Grindrod’s position in regional bulk logistics, linking South African mining operations with its Matola Terminal in Mozambique.

The Durban-headquartered company operates across more than 19 countries, providing rail, road, port and cross-border logistics services to mining, industrial and other commodity customers.

Its regional infrastructure includes port terminals and dry bulk facilities, with the Port of Maputo and Matola Terminal serving as important links in Southern Africa’s export supply chains.

The new rail service could improve the movement of coal between inland production centers and export facilities while expanding private-sector access to Transnet’s network.

Transnet seeks freight recovery

Transnet, South Africa’s state-owned rail, port and pipeline operator, handled 167.9 million metric tons of freight by rail in the year ended March 2026, a 5% increase from the previous financial year.

The improvement signals a gradual recovery, although volumes remain below the government’s longer-term ambitions for rail transportation.

The company manages the country’s major freight rail corridors and port infrastructure, making its performance critical to mining exports, industrial production and regional trade.

Allowing private train operators onto its network is central to efforts to lift freight volumes, improve logistics efficiency and restore the competitiveness of South African exports.