South Africa Opens Freight Rail Network to Private Operators to Boost Efficiency
South Africa Opens Freight Rail Network to Private Operators to Boost Efficiency
The move comes as state-owned logistics firm Transnet struggles with equipment shortages, maintenance backlogs, and widespread theft.
Transport Minister Barbara Creecy stated that 11 of 25 applicant train operating companies met the requirements and will proceed to negotiate contracts for slots across 41 routes, primarily for bulk commodities like coal, iron ore, and fuel.
Grindrod, a South African logistics firm, confirmed it was granted access.
This initiative is expected to add an additional 20 million tons of freight annually, including 10 million tons of coal export capacity over three years, supporting the government's goal of transporting 250 million tons by rail annually by 2029.
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