South Africa’s Transnet Rail Infrastructure Manager (TRIM) is set to allocate its first route slots to private train operating companies (TOCs) following the release of the long-awaited Network Statement in December.
This move marks a significant step toward opening the country’s rail network to third-party operators.
The Network Statement, which will be updated annually on April 1, introduces a differentiated access tariff regime with rates based on commodity types and corridors.
The two-part tariff includes charges per train kilometer and gross ton kilometer, offering a more attractive pricing model for potential TOCs compared to earlier proposals.
TRIM interim CEO Moshe Motlohi announced that applications for the initial slots will close on February 7, with a 60-day adjudication period to follow. Successful bidders will gain access to routes for ten years, with an option for renewal.
The first phase of private operator integration covers 2.4 million tons of capacity across five key corridors:
- A weekly 104-wagon manganese train from Hotazel to Gqeberha (Cape Corridor).
- A weekly 348-wagon iron-ore train from Sishen to Saldanha (Ore Corridor).
- Two weekly 50-wagon container trains from Capital Park to Kingsrest and City Deep/Kaserne to Kingsrest (Central Corridor).
- Two weekly 80-wagon magnetite trains from Phalaborwa to Richards Bay and Phalaborwa to Maputo (North-East Corridor).
- A weekly 50-wagon chrome train from Pendoring to Richards Bay (North Corridor).
The allocations are based on the network’s current annual capacity of 180 million tons—significantly below the initial forecast of 209 million tons and the 250-million-ton target set for 2030, due to extensive maintenance and investment backlogs.
Motlohi acknowledged the significant challenges TRIM faces, including inadequate infrastructure, limited funding, and a substantial maintenance backlog.
Achieving the 2030 target will require R65 billion in investment over the next five years, of which Transnet can fund only half.
To bridge the gap, TRIM plans to:
- Seek fiscal support from the government, similar to funding models used for the South African National Roads Agency Limited.
- Leverage investments from key customers, allowing them to recoup costs over time.
- Access funding through the Budget Facility for Infrastructure (BFI) for priority projects.
Motlohi also highlighted ongoing discussions to involve the private sector in rail infrastructure investment, pending the Department of Transport’s finalization of a framework.
In addition to opening the network to TOCs, Motlohi aims to consolidate TRIM’s operations. This includes stabilizing the workforce—56% of Transnet Freight Rail’s employees have already transitioned to TRIM—and addressing critical areas such as maintenance, signaling, security, and community engagement.
“My message is clear: we are here to improve a network that is vital to our economy, and we are open to collaboration with third-party operators to achieve this,” Motlohi said.
Motlohi emphasized the importance of collaboration and integrity in managing TOCs and ensuring fair treatment of all stakeholders. He acknowledged the economic consequences of Transnet’s poor performance in 2023, which resulted in a loss of R200 billion in mining export revenue and R60 billion in tax income.
“As for me, everyone working here must understand that this is about putting the country first,” he said, reaffirming his commitment to revitalizing South Africa’s rail infrastructure and enabling private sector participation to drive economic growth.
