Creecy: Rail Reform to Unlock Private Investment While State Retains Ownership

Creecy announced that in September 2025, government will launch an RFI for passenger rail investment, to gauge private sector appetite for commuter rail upgrades.


Devdiscourse News Desk | Johannesburg | Updated: 26-08-2025 20:42 IST | Created: 26-08-2025 20:42 IST
Creecy: Rail Reform to Unlock Private Investment While State Retains Ownership
The Department of Transport is finalising the National Rail Master Plan (NRMP), a 30-year evidence-based strategy designed to guide South Africa’s rail transformation. Image Credit: Twitter(@Dotransport)
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South Africa’s Transport Minister Barbara Creecy has reaffirmed government’s commitment to advancing the national rail reform programme, stressing that while the private sector will be invited to invest heavily in rail and port operations, the core infrastructure will remain state-owned.

Speaking at the Southern African Railway Association (SARA) Rail Conference and Exhibition, Creecy highlighted the deteriorating condition of Transnet’s rail infrastructure and underscored the urgency of attracting new funding sources to prevent further decline.

Private Sector Participation in Rail

“The current state of Transnet’s rail infrastructure is cause for concern for freight operators and cargo owners alike. The state has limited availability of resources for major refurbishment. This makes private sector investment critical,” Creecy said.

Earlier this year, the Minister launched an online Request for Information (RFI) to assess interest from private investors. The response was overwhelming: 162 formal submissions were received from domestic and international companies eager to participate in South Africa’s freight rail revival.

To ensure progress, Creecy explained that immediate rehabilitation would be financed through:

  • Transnet’s current infrastructure budget

  • Two applications to National Treasury’s Budget Facility for Infrastructure

  • A joint funding and collaboration framework allowing customers to co-finance network repairs without increasing Transnet’s debt burden

“Later this year, Transnet will issue Requests for Proposals and begin the formal procurement process, which will bring substantial private sector investment into the rail infrastructure, probably through a concessioning model. It is important to emphasise once again that this process will take place in the context of the network as a whole remaining in state ownership,” she said.

Eleven Operators Selected

As part of the reform drive, Creecy recently announced that 11 private sector Train Operating Companies (TOCs) had met the initial qualification criteria and were allocated 41 routes across six corridors, with operating rights of up to ten years.

The Transnet Rail Infrastructure Manager (TRIM) estimates that these operators will collectively move an additional 20 million tonnes of freight annually from 2026/27, supplementing Transnet Freight Rail’s volumes and pushing South Africa closer to its target of 250 million tonnes per year by 2029.

“This is a significant step in our rail reform journey and makes open access to freight rail a reality in our country,” Creecy said. “It will contribute to a more efficient, reliable and sustainable rail system that can promote inclusive growth and ensure job retention and job creation.”

Passenger Rail Revival

The reforms are not limited to freight. In the passenger rail sector, the Passenger Rail Agency of South Africa (PRASA) has successfully revived 35 out of 40 commuter corridors and achieved 77 million passenger journeys in the last financial year.

Creecy announced that in September 2025, government will launch an RFI for passenger rail investment, to gauge private sector appetite for commuter rail upgrades.

“Our goal is to restore capacity to reach 600 million annual passenger journeys on the PRASA network within five years,” she said, noting that modern train sets, route restoration, and improved safety are central to the turnaround strategy.

National and Regional Rail Master Plans

The Department of Transport is finalising the National Rail Master Plan (NRMP), a 30-year evidence-based strategy designed to guide South Africa’s rail transformation.

“When implemented, our Master Plan would complement the Southern African Development Community (SADC) Regional Rail Master Plan. Going forward, we can use both plans to work together as a region,” Creecy said.

The SADC plan envisions a harmonised regional rail network supported by robust policies, environmental standards, and institutional capacity.

Green, Sustainable, and Skills-Driven

Creecy stressed that climate resilience and sustainability must be embedded in South Africa’s rail reform. Investments in electrification, hybrid locomotives, and circular economy practices will align the sector with the country’s climate commitments.

At the same time, she emphasised the need to develop African skills for African rail solutions.

“We must invest in our people — training engineers, logistics practitioners, technicians, managers, and innovators who will design and operate the railways of the future,” Creecy said.

Unlocking Growth Through Rail Reform

With the separation of infrastructure and operations at Transnet, the strengthening of the Railway Safety Regulator, and PRASA’s commuter rail recovery, South Africa is laying the groundwork for a modernised, investor-friendly, and sustainable rail system.

The government believes these reforms will unlock billions in private investment, enhance logistics competitiveness, reduce road congestion, and provide a more inclusive transport system.

“By opening access to rail, we are laying the foundation for economic growth, job creation, and regional integration. The railways of the future must be green, efficient, and designed to serve all South Africans,” Creecy concluded.

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