Transnet has initiated a sweeping review of its 9,000-kilometre secondary rail network, issuing a request for information to gauge private sector interest in operating, co-funding, or taking over concessions on underutilised lines.
The move marks a significant acceleration in the government’s structural reform of South Africa’s logistics sector, aimed at arresting years of declining freight volumes and improving the commercial viability of the national rail grid.
The state-owned logistics company’s 30,000-kilometre rail infrastructure is bifurcated into two distinct systems. The A-Network comprises the high-volume, strategic corridors connecting major mining basins and economic hubs to the ports. The B-Network consists of secondary, low-density feeder and branch lines, many of which are currently non-functioning or severely underutilised.
Transnet Rail Infrastructure Manager (TRIM) — the newly created entity responsible for managing the network and regulating access — has identified the first phase of B-Network lines to be taken to market. The objective is to right-size the overall system by closing commercially unviable short lines, concessioning strategic non-core lines, and disposing of assets that attract no market interest while preserving their rights-of-way for potential future use.
The request for information indicates that several external parties have already expressed interest in operating tourist, passenger, and targeted freight services on these secondary routes. The data gathered will inform the design of formal private sector participation bid packages. This initiative follows closely on the heels of TRIM concluding access agreements with 11 private sector players to operate on the broader rail network.
Among the companies that have signed on are multinational shipping major MSC (via a partnership with TLD Marine) and diversified mining group Menar. These private operators are expected to introduce an initial 24 million tonnes of additional freight capacity across five strategic corridors, with the potential to scale this to 50 million tonnes, supporting Transnet’s ambition to increase total rail volumes from approximately 180 million tonnes to 250 million tonnes by 2030.
The rail reforms run parallel to similar private sector integrations at the country’s seaports, driven by the Operation Vulindlela structural reform programme. Last year, Transnet signed a landmark 25-year contract with Philippines-based International Container Terminal Services to operate Durban Container Terminal Pier 2, which handles over 65% of Durban’s throughput.
The entity is currently seeking a similar partnership for the Richards Bay Dry Bulk Terminal to boost export capacity by 45%. Business Leadership South Africa has welcomed the progress under Transport Minister Barbara Creecy and Transnet CEO Michelle Phillips, though it cautioned that the urgent finalisation of the network statement is required to prevent further losses in national competitiveness.
Transnet Logistics Reform: Key Initiatives
| Asset / Initiative | Strategy / Status |
| A-Network (Core Corridors) | Third-party access granted; 11 private operators signed |
| B-Network (Secondary Lines) | 9,000km under review; RFI issued for private concessions/closure |
| Target Rail Freight Volumes | Increase from ~180Mt to 250Mt by 2030 |
| Additional Private Capacity | 24Mt initial target, scalable to 50Mt |
| Durban Container Terminal Pier 2 | 25-year private operation contract signed with ICTSI |
| Richards Bay Dry Bulk Terminal | Request for Qualification issued to boost capacity by 45% |