When the first public railway line in South Africa opened on 26 June 1860, it was a modest 3-kilometre stretch connecting Durban’s harbour at the Point to the town centre. The inaugural locomotive marked the beginning of South Africa’s railway age, laying the tracks for a network that would eventually link mines, ports, and cities across the country and the continent.
From left to right: Vivien Chaplin, Director: Corporate & Commercial practice and Haafizah Khota, Senior Associate: Corporate & Commercial practice at Cliffe Dekker Hofmeyr
For much of the twentieth century, South Africa boasted one of Africa’s most extensive railway systems, serving as the artery for economic development and regional integration. The comprehensive grid supported the country's industrialisation and played a strategic role in linking landlocked neighbours to global markets through South African harbours.
Notable among its achievements were the Sishen-Saldanha iron ore line and the Richards Bay coal line, both internationally recognised for their heavy-haul operations. The trains on these lines stretch up to 4 kilometres, are powered by up to 10 locomotives, hauling over 300 wagons – among the longest and heaviest in the world.
Yet, despite this rich legacy and notable achievements, years of underinvestment and inadequate maintenance have weakened the rail system. Fortunately, and in line with the pioneering spirit of the railway age, this decline paved the way for the sweeping rail reforms South Africa is now undertaking at an unprecedented scale, aiming to restore its railways as a catalyst for economic renewal and African connectivity.
AfCFTA: corridor thinking for continental growth
Transport and logistics barriers have historically held African countries back, limiting the ability to meet local demand with local production and stifling regional trade. Recognising this, the African Continental Free Trade Area (AfCFTA) identified transport and logistics as one of the most critical sectors for unlocking Africa’s economic potential.
AfCFTA is expected to increase intra-African transport demand by approximately 50% and freight demand by 28% by 2030, according to the UN Economic Commission for Africa.
This surge will place significant pressure on existing infrastructure, making it essential to upgrade corridor capacity and harmonise standards across borders.
For logistics, this means prioritising high-throughput rail routes that link ports to industrial hubs and neighbouring markets, while streamlining processes such as rules of origin, digital customs, and cross-border payments to reduce friction.
Vivien Chaplin and Haafizah Khota 13 Nov 2025 South Africa’s rail network, if stabilised and opened to multiple operators, can serve as a backbone for both north–south and east–west trade flows, anchoring the continent’s ambitions for integrated, efficient, and resilient supply chains under AfCFTA.
Rail reform: The policy architecture is in place
South Africa’s rail network has long been constrained by ageing infrastructure, theft, and operational inefficiencies. These challenges have spilled over into port congestion and unreliable supply chains, impacting the country’s competitiveness. But the landscape is shifting, and recent policy advances, such as the introduction of the Economic Regulation of Transport Act and the National Rail Policy, are laying the groundwork for open access, private sector participation, and integrated planning.
In December 2023, in response to the National Rail Policy, Cabinet approved the National Freight Logistics Roadmap – positioned as the blueprint to tackle the logistics crisis. With a bold vision for transforming the country’s logistics landscape, it highlights the need for integrated planning, infrastructure investment, and digitalisation to address longstanding bottlenecks in rail, road, and port operations.
The Roadmap prioritises open access to rail networks, improved corridor efficiency, and the adoption of sustainable practices, aligning closely with South Africa’s policy reforms and the continent’s push for regional integration under AfCFTA.
On 20 December 2024, the Minister of Transport approved publication of the Transnet Network Statement, setting the terms for third‑party access conditions, capacity allocation, and a differentiated two‑part tariff (train‑kilometres and gross tonne‑kilometres) aligned to corridors and commodities. This replaced earlier proposals for a single minimum fee, making access more bankable for private operators.
The accession to the Luxembourg Rail Protocol in 2025 further strengthens cross-border financing and legal certainty, making rail investment more attractive. The Department of Transport’s robust market engagement in pursuit of partnerships between the public and private sectors has also signalled a new era of collaboration and innovation.
Early signs of progress
A rigorous selection process overseen by Transnet Rail Infrastructure Manager (TRIM) seeks to ensure that new entrants complement existing operations, supporting the broader goal of building a resilient, competitive, and growth-oriented logistics system.
By August 2025, TRIM completed its first adjudication: 11 of 25 applicants received conditional awards to operate on 41 routes across six corridors (bulk commodities and containers). Government expects these entrants to add ~20 million tonnes per year from FY2026/27, supporting the target of 250 Mt by 2029. Slot durations range from 1–10 years, subject to Railway Safety Regulator permits, rolling‑stock readiness and port capacity.
On the passenger side, PRASA’s Corridor and Station Recovery Programme has progressed, with parliamentary oversight in March 2025 noting recovery across 34 commuter lines and continued modernisation, while the Central Line/ Mitchells Plain corridor moved through final testing and safety clearances, which are vital for affordable commuter mobility and productivity.
Digitalisation: Steering rail into the future
At the same time, an overdue digital revolution is underway. Transnet’s 4.0 Strategy is bringing real-time cargo tracking, digital scheduling, and predictive maintenance to the heart of logistics. Automated container tracking at major terminals like Durban, IoT sensors on rolling stock, and cloud-based platforms for train movements.
Transnet’s annual reports and official communications highlight ongoing investments in digital transformation. As open access brings new operators onto the network, digitalisation will be the key to unlocking efficiency, reliability, and customer-centric service.
The Luxembourg Protocol also introduces the URVIS—a global, permanent 16-digit identification number for all railway rolling stock. Issued by the International Registry, this system simplifies the tracking, maintenance, and registration of security interests in rolling stock worldwide, benefiting operators, lenders, manufacturers, service providers, insurers, and regulators.
What’s next: Execution and innovation
South Africa’s rail reform is not just a policy change; it’s the coming-together of a practical plan. By embracing collaboration, digital innovations, and sustainable operations, rail can shift from being a challenge to becoming a powerful engine for national and continental prosperity.
