Western Cape Government
By Thabo Mosia
Western Cape Government welcomes Transnet’s allocation of new train operators to boost rail efficiency and economic growth, as officials expressed support for Transport Minister Barbara Creecy’s announcement on 22 August 2025 regarding the completion of the adjudication process for third-party Train Operating Companies (TOCs). This milestone is seen as a vital step in revitalising the national rail system, particularly benefiting the province through enhanced manganese transport to the Port of Saldanha, while shifting freight from roads to rail to ease infrastructure pressure and drive job creation.
Minister Creecy’s Announcement on Rail Reform Progress
Transport Minister Barbara Creecy revealed during a media briefing in Pretoria on 22 August 2025 that Transnet’s Rail Infrastructure Manager (TRIM) has finalised the selection of 11 new TOCs from 25 applications received. These operators will be allocated 41 routes across six key corridors, with operating periods extending up to ten years. The move is expected to add an additional 20 million tonnes of freight annually starting from the 2026/27 financial year, supplementing Transnet Freight Rail’s (TFR) volumes and contributing to the government’s ambitious target of 250 million tonnes of rail freight by 2029.
Creecy emphasised that this development marks a significant advancement in South Africa’s rail reform journey, making open access to freight rail a reality. “This is a significant step in our rail reform journey and makes open access to freight rail a reality in our country. It will contribute to a more efficient, reliable and sustainable rail system that can promote inclusive growth and ensure job retention and job creation,” she stated. The corridors include critical routes for commodities like coal, manganese, and general freight, with the process ensuring compliance with the Draft Network Statement published in April 2025.
The adjudication followed a rigorous evaluation, with applications opening on 20 December 2024 and closing on 27 February 2025. TRIM will open a new application window next week for ad hoc slot allocations under Volume 3 of the Network Statement for the 2025/26 financial year. This interim measure allows for additional capacity utilisation while long-term reforms progress.
Business leaders have welcomed the announcement. Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), described it as a “big step forward” in rail reform, noting its potential to level the playing field and boost logistics efficiency. However, the Democratic Alliance (DA) criticised the plan for maintaining Transnet’s monopoly over rail operations. DA MP Chris Hunsinger argued that true competition requires fully opening the system, warning that protecting Transnet’s control could perpetuate failures, corruption, and inefficiencies.
Western Cape’s Strong Support and Local Impact
The Western Cape Provincial Government has voiced enthusiastic backing for the initiative, highlighting its direct benefits to the province. In a statement released on 25 August 2025, officials noted that two new TOCs have been allocated to the Cape Corridor, which serves the Western Cape by transporting manganese from the Northern Cape’s Hotazel and Postmasburg mining regions to the Port of Saldanha. Saldanha Bay, South Africa’s premier bulk export port, handles significant volumes of iron ore and manganese, making it a strategic asset for the provincial economy.
MEC for Mobility Isaac Sileku praised the announcement as a critical advancement. “Opening access to our freight rail network is a critical step towards building a modern, efficient, and sustainable rail system that drives economic growth, creates jobs, and strengthens our province’s role as a national and international trade hub. We look forward to working closely with Transnet, new operators, and the private sector to ensure that these reforms deliver real benefits to our communities and businesses,” Sileku said.
He added that by opening the Cape Corridor, the province can shift more cargo to rail, reducing road congestion and unlocking growth at Saldanha Port. This aligns with ongoing efforts to modernise logistics, including the Western Cape’s push for private investment in rail and ports as outlined in earlier statements from March 2025.
MEC for Agriculture, Economic Development and Tourism Dr Ivan Meyer echoed these sentiments, linking the reform to the province’s Growth for Jobs Strategy. “This milestone marks a significant step forward in South Africa’s rail reform journey and aligns powerfully with the Western Cape’s Growth for Jobs Strategy. By enabling third-party access to our rail network, we are unlocking new opportunities for private sector investment, improving freight efficiency, and laying the foundation for inclusive, jobs-rich economic growth,” Meyer stated.
He emphasised that the allocation supports goals of boosting exports, enhancing competitiveness, and driving investment in agriculture and agri-processing. Strengthening manganese flows to Saldanha will enhance the port’s global standing, ease road pressure by diverting heavy loads from trucks, and improve supply chain reliability for exporters in mining, agriculture, and manufacturing.
The provincial government urged swift implementation, calling on national government, Transnet, new operators, and cargo owners to act urgently. “The focus must shift to implementation and delivery,” the statement read, underscoring the need to realise rail reform’s full benefits.
Economic Benefits for Mining and Agriculture Sectors
This development is particularly timely for the mining and agricultural sectors, which have long advocated for rail improvements to meet export demands. The Cape Corridor’s manganese routes are vital, with Saldanha handling over 60 million tonnes of bulk exports annually, primarily iron ore and manganese. By increasing rail capacity, the new TOCs will help producers transport vital minerals more efficiently, reducing reliance on costly and environmentally damaging road haulage.
For agriculture, enhanced rail services could lower logistics costs for exporters, supporting the Western Cape’s aim to triple exports by 2035 under its Growth for Jobs Strategy. Improved freight reliability generates investment in rolling stock and terminals, potentially unlocking billions in private sector opportunities to modernise the system.
Operators like mining company Menar, which gained access for coal transport in other corridors, exemplify the broader impact. While specific names for the Cape Corridor TOCs were not disclosed in the announcement, the focus on manganese underscores the strategic importance for the Northern and Western Cape economies.
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