Transnet requests US$2.2B from Treasury to overhaul rail, port infrastructure
Opening rail freight to private operators is part of a national plan to increase rail volumes from about 180 million tons to 250 million tons by 2030.
SOUTH AFRICA – Transnet has requested 35 billion rand (approx. US$2.2 billion) from South Africa’s National Treasury to modernize infrastructure and ease bottlenecks that are hurting exports and weighing on economic growth.
Transport Minister Barbara Creecy announced the request, with the South African freight and logistics company to receive the funding through the National Treasury’s Budget Facility for Infrastructure (BFI).
Part of the funding would finance projects running through 2030, including upgrades to railway lines that will allow 11 private operators awarded train paths on the national rail network in May to begin freight services.
Creecy stated that the integration of the private operators was expected to add 24 million tons of freight capacity to the network, with that target potentially reached within the next 18 months, according to Bloomberg.
Private Rail Operators and Freight Expansion
The selected private operators are ARC South Africa (ARC), The Railway Corporation, TLD Marine, Menar Ports & Rail, Sharp Logistics, Barberry, Grindrod, Minrail, IRACEMA, Motheo Logistics and Interlinks. Their services will cover several key freight categories, including coal, manganese, containers, fuel and general freight.
Opening rail freight to private operators is part of a national plan to increase rail volumes from about 180 million tons to 250 million tons by 2030. South Africa’s rail freight sector, previously dominated by Transnet, is gradually opening to private operators while the infrastructure remains under public control.
Infrastructure Modernization and Future Outlook
Other projects aimed at improving Transnet’s performance include introducing a privately operated floating dock at the Port of Cape Town to expand ship-repair capacity, Creecy said.
The South African government continues to provide substantial support to Transnet through guarantees and financing to strengthen its liquidity and investment capacity.
For instance, in November 2025, Transnet received 13 billion rand (approx. US$ 800 million) from the Budget Facility for Infrastructure. Of that amount, 11.2 billion rand (approx. US$689 million) was allocated to rehabilitating rail corridors to improve efficiency at the Durban container terminal.
Additionally, the company said in October 2025 that it planned to invest a total of 127 billion rand (approx. US7.82 billion) over five years to modernize its rail and port infrastructure.
Ultimately, the government is prioritizing these strategic investments to prevent the collapse of a critical utility and to modernize the country’s transport efficiency.
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