
South Africa’s move to allow private companies to operate freight trains on the state-owned rail network is gaining momentum, with 12 operators signing network access agreements. One of these operators, Grindrod, recently completed a trial carrying 2,991 tons of cargo and plans to begin transporting coal to Mozambique in 2027. The government’s move to open the rail network to private operators is an attempt to reverse years of declining freight volumes. Transnet’s freight volumes fell from 226.3 million tons in 2017/18 to 149.5 million in 2022/23 before recovering to 167.9 million tons in the year ended March 2026. Rail and port failures cost coal and iron ore producers an estimated $6 billion in export revenue between 2021 and 2023, as many companies had to transport their quarry by road because of insufficient rail capacity.
