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South Africa Opens Rail Network to 11 Private Operators
South Africa granted 11 private companies permission to operate trains on the national rail network for the first time in more than a century. The change is intended to increase mineral exports and reduce financial pressure on state-owned Transnet. Transnet officials described the step as a game changer for responding to global demand for raw materials.
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South Africa granted 11 private companies permission to operate trains on the national rail network for the first time in more than a century. The decision is aimed at boosting mineral exports and easing financial pressure on state-owned Transnet after years of operational crisis.
Transnet operates a large network of railways, ports, and pipelines that plays a central role in the economy of Africa's largest economy by GDP.
More than a decade of decay and corruption scandals have turned the infrastructure into a chokepoint for freight movement. The new system allows private operators to run trains on the national network under a regulated slot arrangement. Officials said the approach is designed to reverse the long-term decline in performance.
” The arrangement will let operators such as Geneva-based shipping firm MSC and Africa’s largest shipping company Grindrod respond to growing global demand for the continent’s raw materials. The permission takes effect immediately under the terms announced on May 15, 2026.
It marks the first time in more than 100 years that private firms have been allowed to run freight services on the mainline network.
