Private Train Operators Approved on 41 Routes: Rail Reform Set to Boost Jobs, Exports, and Efficiency
The Department of Transport’s decision to grant 11 private train operators access to 41 rail routes is expected to strengthen competition, safeguard jobs, and revive South Africa’s struggling freight logistics system, according to Business Unity South Africa (Busa).
Transport Minister Barbara Creecy announced the milestone last Friday, calling it a critical step in the country’s freight rail reform program.
The move is projected to unlock more than 20 million additional tonnes of rail freight in the coming year—an essential contribution toward government’s target of moving 250 million tonnes by rail annually by 2029.
Busa welcomed the announcement, stressing that an efficient freight rail system is vital to tackling logistics bottlenecks, rising costs, and widespread job losses.
Sectors such as mining, manufacturing, and agriculture have been particularly hard-hit by inefficiencies in the rail network.
“This is about saving jobs now and building a stronger economy tomorrow,” said Busa CEO Khulekani Mathe.
“The success of rail reform will be judged not only by the movement of trains, but by the movement of goods, growth in exports, and the number of South Africans who find work because logistics costs came down.”
Mathe highlighted that the decision effectively ends decades of state monopoly over freight rail operations. However, he emphasized that the reform does not amount to privatizing public infrastructure.
“The rail network remains a national asset, owned by the state and regulated in the public interest,” Mathe explained.
“What is changing is who can run trains, with more participants now allowed to bring in investment, expertise, and capacity to revive a failing system.”
Busa’s economic policy director, Lunga Maloyi, said its members are prepared to invest not only in trains but also in rolling stock, rail security, maintenance partnerships, and corridor upgrades.
“These investments will revive upstream industries, support local suppliers, and rebuild industrial capabilities weakened by years of neglect,” said Maloyi.
He also called for clear, consistent regulation under the Transport Economic Regulator to ensure that access to rail is transparent, fair, and aligned with long-term national goals.
While celebrating the milestone, Busa noted that rail reform is just the beginning of a broader structural overhaul of South Africa’s logistics system. The true measure of success, it said, will be visible public benefits: reduced transport costs, improved infrastructure, stronger exports, and the creation of decent work.
“Busa commends the Department of Transport, the Interim Rail Economic Regulatory Capacity, and Transnet’s Rail Infrastructure Manager for the progress made,” the organization said.
“We remain committed to working with all partners to ensure reform is done with South Africans, not just for them.”
