South Africa’s freight rail network is under strain, yet it remains one of its greatest opportunities for economic renewal and industrial growth. For investors, freight users, and logistics specialists, this is a chance to help rebuild a critical national asset while unlocking long-term value in a sector essential to the country’s recovery.
On the Northern Corridor alone, the coal artery to Richards Bay, Transnet estimates R13 billion is needed for critical maintenance. That’s 10% of its entire debt book. And in just the next fiscal year, R2 billion is required to restore even basic functionality. Transnet cannot fund this rehabilitation. Its five-year capital requirement is estimated at around R65 billion, which is money it doesn’t have. To support this, the government approved a R51 billion guarantee facility in May: R41 billion to meet Transnet’s funding needs over the next two years, and R10 billion for liquidity support. This comes barely 18 months after a previous R47 billion guarantees, underscoring the desperate situation.
With Transnet struggling and the government under pressure, it was clear that something needed to change. Transnet and the Department of Transport have finally acknowledged that they cannot fix the system alone and are calling for co-investment and co-operation. This is a significant shift.
Opening the doors to private sector participation not only aims to revitalize the rail network, and restore export capacity but also provides the opportunity to revive mining communities, attract investment, and enhance national competitiveness.
How private sector participation can transform freight efficiency
In March 2025, Transnet issued a Request for Information (RFI) to gauge private sector interest in freight rail and port logistics. Three priority corridors are up for revival: Coal to Richards Bay; iron ore to Saldanha; and container traffic to Durban.
An accompanying request for proposal (RFP) is due later this year, and additional RFIs, including manganese and passenger rail corridors, are on the horizon.
For the mining sector and freight operators, it is imperative to engage in both strategic and financial ways. Involvement in the rail network and operations isn’t just about moving goods. It’s about de-risking operations, ensuring cost efficiency, and unlocking long-term returns through access to mission-critical infrastructure.
The government has clarified that while the state will retain ownership of the rail network, operational control and financial input can be shared. To do so, various participation models exist, from track upgrades and terminal development to end-to-end corridor management.
Alignment and collaboration are key to South Africa’s rail revival
While the private sector could participate piecemeal in selecting parts of the rail network, we believe infrastructure rehabilitation must be approached as a whole. Fragmented efforts won’t deliver the operational continuity, safety, and efficiency required, only a corridor-wide view can. Some stakeholders may choose to invest; others may wish to operate. What matters is alignment — alignment of participants who can bring capital, capability, and/or execution strengths to the table.
No single entity can take on this scale of work alone but the potential is already clear. During the RFI portal’s open period, between March 24 and May 9, the site drew 11,000 visits and generated 163 official responses to the RFI, the transport ministry revealed. The most effective influence will come from consortiums, blending the resources of miners, funders, original equipment manufacturers (OEMs), and logistics experts. Each must contribute more than just money. Deep expertise and delivery capacity will be critical. This all must be collaborative.
This is echoed by the industry players, who have made it clear that if they are to participate, they need to change their mindset fundamentally. They want a say about how the railway line is funded, managed, and maintained. Without this level of system-wide influence, private players lack the investment security they desire, making participation far less attractive.
The mining industry is not primarily motivated by financial gain from logistics operations, it wants predictability, efficiency, and transparency, which are all qualities currently in short supply. For freight users, the prize is a network that works: one that moves products efficiently to port, reduces reliance on road freight, and supports long-term growth.
Now is the time for private sector to help build South Africa’s future
This is not just about trains. It’s about national recovery. Decisions made over the next year will determine whether South Africa can restore lost export volumes, revive its mining heartlands, and reassert its economic potential.
The forthcoming RFP is more than a procurement exercise; it’s an opportunity to shape the future. The mining industry, investors, and operators need to prepare now: understand the policy environment, assess the corridors, and consider where their strategic interests align.
For the private sector, the moment to step in is now — not to take over but to build together.