South Africa’s freight rail reform programme is one of the most significant shifts in the country’s logistics landscape in decades. Its success will be measured not only by the number of operators entering the network, but by whether the system becomes more competitive, reliable and capable of supporting economic growth.Since its establishment as an independent operating division within Transnet, the Transnet Rail Infrastructure Manager (Trim) has pursued a clear mandate of enabling equitable access to South Africa’s freight rail network while safeguarding the integrity, safety and long-term sustainability of the infrastructure.The mandate has been shaped through engagement with industry, government, regulators and prospective access seekers. It is also reflected in the development of the network statement and in the recent announcement of 11 new train operating companies, with some expected to commence operations towards the end of this year. Their entry into the market marks an important milestone in South Africa’s rail reform journey and signals growing confidence in the direction of the programme.From policy reform to implementation The establishment of Trim as a standalone infrastructure manager on April 1 2025 marked a major milestone in South Africa’s rail reform programme. Since then, significant progress has been made, including:The publication and progressive refinement of the network statement through version three in December 2024 and version four, which is now open to public comment;The development of access processes for prospective access seekers;Continued alignment with the government’s national rail policy and freight logistics roadmap;Ongoing collaboration with the department of transport, rail regulators and industry stakeholders; andThe announcement and introduction of 11 new train operating companies, with some expected to commence operations towards the end of this year.These milestones demonstrate rail reform has moved beyond policy development and institutional restructuring into active implementation. Together, they reflect steady progress towards a more competitive, efficient and investor-friendly freight rail sector, with growing market participation and a progressively more open rail network.Strong policy oversight and governanceTrim’s work is guided by national policy, not developed in isolation. The network statement has been aligned with the national rail policy adopted by cabinet in 2022, the South African freight logistics roadmap, and the broader logistics reform programme led by the government. Together these frameworks envisage an open, competitive and non-discriminatory rail environment that attracts private sector participation while protecting the national interest.Trim’s responsibility is to translate those policy objectives into workable operational mechanisms. This requires balancing competition, safety, fair access, infrastructure performance and investor certainty.Most importantly, the rail reform programme is underpinned by strong governance and oversight to ensure transparency, accountability and policy alignment throughout implementation. The department of transport provides strategic policy leadership, oversees the implementation of the national rail policy and broader reform agenda, and considers recommendations from the interim rail economic regulatory capacity. Until the transport economic regulator is fully operational, the transport minister exercises the statutory approval powers for the network statement and rail access tariff methodology. This transitional oversight framework provides continuity, regulatory certainty and effective governance as South Africa advances towards an independent rail economic regulatory regime.Evolving blueprint for open accessThe network statement is more than a technical publication. It is the operational blueprint that sets out the rules, procedures, timelines, capacity allocation processes and charging principles that underpin open access to the rail network.From its first publication, each iteration has been shaped by broad industry input from logistics customers, train operating companies, regulators, financiers and organised business. Those contributions have helped refine the document, improve clarity and align it more closely with operational realities and national policy objectives.This approach is deliberate. Rail reform introduces new commercial relationships, operating models and regulatory considerations into an environment that has historically been constituted differently. As implementation progresses, it requires varying ongoing refinements. Trim’s role is to respond to those realities and ensure the framework remains fit for purpose.Network statement revisions are part of the normal evolution of a reform programme that is being tested in practice and refined through experience. The successive versions of the network statement reflect that evolution. They also reflect the practical demands of opening the network to new participants and contribute to the next phase of market development.The draft network statement version four public consultation engagements form an important part of this process. Trim welcomes stakeholder participation and will give due consideration to all substantive inputs received before finalising the network statement.Advancing reform through partnershipRail reform is not a destination reached by a single institution. It is a national undertaking that depends on collaboration between the government, industry, regulators, infrastructure managers, train operators and customers.Trim recognises sustainable reform requires meaningful consultation. The publication of draft network statement version four reflects that principle and the role of industry sentiment in shaping the framework.The introduction of 11 new train operating companies adds further momentum to this journey. Their participation will help deepen market development, broaden operational capacity and demonstrate the practical value of a reform process shaped by industry input and guided by national policy.As South Africa advances its logistics reform agenda, Trim remains committed to enabling fair and efficient access to the national rail network, fostering investor confidence and ensuring rail once again becomes the backbone of the country’s freight logistics system.Together, we are building a more competitive, resilient and inclusive rail sector.• Dr Sangqu chairs the board of directors at Transnet.Business Day
ANDILE SANGQU | Rail reform is rooted and shaped through collaboration
Government oversight and policy alignment drive investor confidence
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