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In a major boost for its struggling logistics network, South Africa has secured its largest-ever private freight rail investment, valued at over $200 million. The deal, led by pan-African operator Traxtion, includes the acquisition of 46 diesel-electric locomotives from New Zealand and the construction of new wagons, marking a significant vote of confidence in Pretoria’s rail reform agenda. This investment will introduce true private competition to a sector long dominated by the state-owned Transnet, aiming to alleviate severe freight capacity shortfalls. The project promises substantial local benefits, targeting 60% local content and creating over 600 jobs during its rollout. The first locomotives will be operational by May 2026, with the full fleet ready by 2028, offering high-capacity freight solutions to ease South Africa’s logistics bottlenecks and revive the country’s status as a regional transport hub.
Business Insider Africa