Transnet unveils R127bn investment plan to modernize South Africa’s rail and port infrastructure
Johannesburg — South Africa’s state-owned freight and logistics company Transnet plans to invest R127 billion over the next five years to modernize its rail network and upgrade ports, Chief Executive Michelle Phillips announced on Tuesday.
Speaking at the South Africa Tomorrow Investor Conference, Phillips said R24 billion had been invested in infrastructure in the previous financial year, with R25 billion budgeted for the current year.
“We will go to market for partners as well as for funders,” Phillips said, highlighting major upcoming projects including the Richards Bay dry-bulk terminal and the Pier 2 container concession at the Port of Durban.
Transnet — a central player in South Africa’s trade and logistics — has long struggled with aging infrastructure, which has constrained exports of critical commodities such as coal and iron ore.
Phillips noted that maintenance shutdowns are underway across key routes, including a ten-day closure of the iron-ore corridor, to accelerate essential repairs and improve operational reliability. The modernization program also includes new cranes and port equipment in Durban to boost efficiency.
To strengthen its operations and attract investment, Transnet is pursuing strategic partnerships with mining companies and exporters. The company is also advancing private-sector participation programs to bring in additional expertise, funding, and technology.
“We’re developing a formal customer-collaboration policy that allows customers — because they’ve asked for it — to step in where we face challenges,” Phillips said. “That includes support in areas such as funding and skills.”
Looking ahead, Transnet aims to finalize private-sector participation projects, issue an updated rail network statement for 2025/26, and grant approved train-operating companies access to the network, signaling a more open and competitive logistics environment.
