The Road Freight Association (RFA) has welcomed the announcement by transport minister Barbara Creecy on the outcome of Transnet’s slot allocation process to big business in SA.
Creecy announced successful operators had been identified as the government trials a third-party access programme that for the first time breaks Transnet’s monopoly on the network.
The aim is to improve rail volumes, which have plummeted due to historical underinvestment in infrastructure, a shortage of rolling stock, theft and vandalism.
Creecy said 11 private operators had been selected from 25 applicants and would now proceed to the next phase. Assuming various conditions are met they will operate 41 routes across all of Transnet’s six corridors for up to 10 years.
“This is a historic and necessary step towards a more efficient national logistics system for SA,” the RAF said in a statement.
For a long time, the association has maintained the country’s economic success depends on a well-integrated and collaborative freight logistics network.
The first 11 private sector partners have been notified to engage with Transnet on the preparation of the contracts that will determine the conditions under which they operate, with the expectation of increasing the current volume from 160-million tonnes to R250-million tonnes annually, an increase of 90-million tonnes over the next five years.
Why it matters
- End of monopoly: First time private operators gain access to Transnet’s rail network.
- Economic boost: Freight volumes could rise by 90m tonnes over 5 years.
- Public–private test: Measures collaboration between government and business on logistics reform.
- Trade competitiveness: Efficient rail is vital for mining and export industries.
- Policy shift: Seen as a milestone in structural reform of state-owned enterprises.
“While the announcement is a moment to be celebrated, the RFA must emphasise that this is the beginning of a long journey that started with the cabinet’s approval of the National Rail Policy in March 2022. The success of this initiative will depend on a clear and stable regulatory framework, equitable access to efficient ports and other key infrastructure, and a shared commitment from all stakeholders to operational excellence,” the RAF added.
Exxaro Resources, one of SA’s biggest mining companies, also applauded Creecy’s decision as an important milestone.
“The agreement outlines clear performance expectations and joint planning initiatives to enhance rail capacity and optimise long-term logistics. This aligns with Exxaro’s commitment to operational efficiency and long-term sustainability, Transnet’s mandate to ensure the security of logistics supply, and supports the national objectives of strengthening SA’s trade and logistics,” Exxaro CEO Ben Magara said.
Business Day reported on Monday that Creecy was unapologetic over her so-called meddling in Transnet. She reiterated her responsibility, as representative of the state as a shareholder, to “intervene where necessary” to ensure the logistic operator’s mandated legislative, structural and organisational reform is implemented “without any further delay”.
Creecy, whose portfolio includes 16 state-owned enterprises, attends daily war room meetings at Transnet aimed at unlocking port and rail blockages. She is duty-bound to drive the policy reform agenda at Transnet, with private sector support, she said.
“This will enable the required infrastructure upgrades at SA’s ports and railways. The rest of the world implemented what we are trying to do now 20 years ago,” Creecy said.
When we speak of structural reform in logistics, this is what we mean — creating the competitive environment that will drive efficiency, investment and ultimately economic growth.
— Business Leadership SA
She added that reforming Transnet would take far longer than it took to turn around power utility Eskom and stave off load-shedding.
“I work closely with the entities every day. How do you run railway lines or ports without co-operation? The current financial difficulties are because we are not operating optimally and assets are not being sweated.”
Business Leadership SA (BLSA) said Creecy’s action is an important step towards public private sector partnership at Transnet to get SA working.
“This is the realisation of years of intense collaboration between business and government to improve the performance of the rail network by introducing private operators and investors. When we speak of structural reform in logistics, this is what we mean — creating the competitive environment that will drive efficiency, investment and ultimately economic growth. This step is one along the plan that we have been advocating for through the National Logistics Crisis Committee (NLCC),” BLSA said in a statement.
The business forum encouraged public and private sector partners to work together to set an example as the rollout begins as this could affect how business and government could work together in future.
“Introducing competition was never going to be easy. Breaking up a monopoly requires political courage, regulatory sophistication and sustained commitment from all stakeholders. That we now have 11 new entrants preparing to move 20-million additional tonnes of freight annually from 2026/27, and able to participate in funding for future growth, is testament to what can be achieved when we move beyond the tired rhetoric of public versus private and focus on solutions,” BLSA added.
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