‘It is time to rail’ in South Africa as access agreements signed with 11 freight operators

SOUTH AFRICA: Transnet Rail Infrastructure Manager has signed rail access agreements with 11 train operating companies that have been awarded capacity on the national network.

TRIM was established to manage and maintain the 1 067 mm gauge national network, unbundled from incumbent operator Transnet Freight Rail Operating Company.

The signing of the rail access agreements on May 13 ‘represents more than just slot allocation, it signals the creation of a functional and competitive rail marketplace’, said TRIM Chief Executive Moshe Motlohi. ‘We have moved from policy design to practical implementation, enabling real private sector participation and investment in rail.’

11 train operating companies

The 11 train operating companies, which were selected last year from 25 applicants, are:

• African Rail Company South Africa;
• The Railway Corp;
• TLD Marine;
• Menar Ports & Rail;
• Sharp Logistics;
• Barberry;
• Grindrod;
• Minrail;
• IRACEMA;
• Motheo Logistics;
• Interlinks.

The 11 operators joining incumbent Transnet Freight Rail are active in sectors including coal, manganese, containers, fuel, and general freight.

The new operators are expected to introduce an additional 24 mtpa of freight capacity to the network, with the potential to scale to 52 mtpa over the next five years, supporting a national objective of increasing rail volumes from approximately 180 mtpa to 250 mtpa by 2030.

TRIM is now engaging with the operators to assist with operational readiness, with some hoping to commence operations before the end of 2026 and the rest during 2027.

TRIM said the ‘collaborative’ process has also enhanced the bankability of rail projects by incorporating feedback from both operators and financial institutions. This will inform ongoing improvements to its Network Statement, with Version 4 nearing finalisation.

‘It is time to rail!’

The Southern African Railway Association said the award of access rights is important for the wider Southern African Development Community region, ‘where rail remains critical for cross-border trade, mining exports, supply chains and port access’. SARA said ‘improved freight rail connectivity has the potential to support faster movement of goods between Southern African economies and global markets’.

Menar Ports & Rail said it had been allocated a capacity of 8.6 mpta, and has now begun procurement of locomotives and wagons to transport coal, manganese and ferromanganese ‘from pit to port’ for its own products and other mining operations.

African Rail Company said the signing came ‘after two years of intensive and rigorous preparation’ in collaboration with TRIM, and its focus ‘is now 100% on operational execution’.

ARC said ‘the regulatory phase is complete. It is time to rail!’

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