Western Cape Welcomes Rail Reform as New Operators Boost Saldanha Corridor

The Western Cape Provincial Government has welcomed Transport Minister Barbara Creecy’s announcement on the conclusion of Transnet’s adjudication process to allow private participation in South Africa’s freight rail network. The move, described as a milestone in the country’s rail reform journey, will see new Train Operating Companies (TOCs) granted access to key corridors, including two operators allocated to the Cape Corridor, which directly serves the province.

Private Sector to Strengthen Rail Capacity

Minister Creecy said that opening the Transnet Rail Infrastructure Manager (TRIM) to third-party operators would expand freight rail volumes significantly, with projections that new TOCs could move an additional 20 million tonnes of cargo annually starting in the 2026/27 financial year. Out of 25 applications, 11 companies met the requirements and will proceed to the contracting phase.

The reform is expected to benefit South Africa’s strategic sectors — particularly mining, agriculture, and manufacturing — by expanding capacity, improving reliability, and reducing bottlenecks that have long hampered exporters.

The Cape Corridor: Manganese to Saldanha

For the Western Cape, the allocation of two new TOCs to the Cape Corridor is particularly significant. The operators will manage manganese freight routes from Hotazel and Postmasburg in the Northern Cape to the Port of Saldanha, South Africa’s premier bulk export port.

Strengthening these flows will not only boost Saldanha Bay’s competitiveness in global mineral exports but will also divert heavy cargo from road to rail, reducing truck congestion and road damage while lowering carbon emissions.

“Opening access to our freight rail network is a critical step towards building a modern, efficient, and sustainable rail system that drives economic growth, creates jobs, and strengthens our province’s role as a national and international trade hub,” said Isaac Sileku, Western Cape MEC for Mobility.

Economic Growth and Infrastructure Investment

The reforms are expected to unlock substantial private sector investment in rolling stock, terminals, and infrastructure upgrades, creating new opportunities for logistics and export-driven industries.

“Improved freight services can generate greater investment in rolling stock and terminals, unlocking billions of rands in private sector opportunities that will modernise South Africa’s rail system,” Sileku added.

Western Cape MEC for Agriculture, Economic Development and Tourism, Dr Ivan Meyer, said the move aligns with the province’s Growth for Jobs Strategy, which aims to drive sustainable, inclusive growth.

“By enabling third-party access to our rail network, we are unlocking new opportunities for private sector investment, improving freight efficiency, and laying the foundation for inclusive, jobs-rich economic growth,” Meyer said.

He highlighted that the Cape Corridor allocation supports key provincial priorities, particularly boosting exports, agriculture, and agri-processing.

Shifting Focus to Delivery

With the adjudication process complete, the Western Cape Government stressed that attention must now turn to implementation and delivery.

“The Western Cape Government urges all partners, including national government, Transnet, new operators, and cargo owners, to move with urgency so that the full benefits of rail reform are realised,” the provincial government said in a statement.

The province believes the reforms will enhance supply chain reliability for mining, agriculture, and manufacturing exporters, while also advancing broader economic goals of job creation, trade competitiveness, and infrastructure-led growth.

Rail Reform at a Turning Point

The inclusion of private operators marks one of the most significant shifts in South Africa’s freight logistics sector in decades. If effectively implemented, the reforms could help reverse years of decline in Transnet’s freight performance and position rail as a driver of economic recovery, sustainability, and global competitiveness.