South Africa Targets Major Rail Freight Expansion Under Transport Reform Agenda

South Africa plans to shift up to 24 million tons of freight annually from 1 April next year as part of a broader logistics and mobility reform programme aimed at boosting economic growth and exports.

Delivering the transport department’s Budget Vote in Parliament on Tuesday, May 12, Transport Minister, Barbara Creecy, said the reforms would help move more minerals, vehicles and agricultural products to international markets while supporting jobs and State revenue.

Creecy announced that the Transnet Rail Infrastructure Manager would soon unveil 11 private train operating companies expected to support increased export volumes and improve efficiency within the rail sector.

The minister tabled a R102 billion budget for the 2026/27 financial year to strengthen transport infrastructure and create a more competitive and inclusive system for commuters and freight operators.

She said major infrastructure projects were already progressing, including the Durban Container Terminal Pier 2 expansion, which is expected to increase annual handling capacity from 2 million to 2.8 million TEUs. Other projects expected to move forward this year include the Ngqura Manganese Export Corridor, Richards Bay Dry Bulk Terminal and the Gauteng-eThekwini container corridor.

According to Creecy, government has already approved R16.8 billion in public investment for rail and port infrastructure, with additional applications worth R23.6 billion under development.

In the aviation sector, Airports Company South Africa recorded 37.498 million passenger movements over the past year, up from 34.508 million previously, as the industry continues its recovery. The government aims to reach 42 million passengers and 1.2 million tons of air freight through the ACSA network by 2029.

Creecy also highlighted reforms in the taxi industry, including plans to review the Taxi Recapitalisation Grant and support affordable financing for operators. She said the sector, which contributes an estimated 1.4% to South Africa’s GDP, remains one of the country’s largest black-owned industries.

The South African National Taxi Council has also piloted a cashless taxi route in Gauteng as part of efforts to modernise the sector and improve safety and financial accountability.