South Africa Opens Freight Rail to Private Operators in Logistics Shake-Up

In a major move to revitalize its struggling logistics sector, South Africa is opening its freight rail network to private companies. This decision comes as the state-owned firm Transnet battles severe inefficiencies, including equipment shortages and rampant cable theft, which have drastically reduced freight volumes. After a competitive application process, 11 private operators have been approved to run trains on 41 key routes, adding capacity for transporting vital commodities like coal, iron ore, and fuel. The government emphasizes these firms will complement, not replace, Transnet’s services. This initiative is a cornerstone of a broader recovery plan, aiming to add 20 million tons of freight annually and work towards a national goal of 250 million tons by 2029.

Reuters