More than half of South Africa’s freight logistics reforms are not progressing according to schedule.
This is according to the latest Operation Vulindlela Phase II Q4 Progress Report, which shows that 60% of freight logistics reforms are categorised as “delayed/off track, but underway” while 40% are listed as “reform progress on track”. None of the logistics reforms are classified as completed.
Outstanding reforms listed in the report include publication of a revised Network Statement, further requests for proposals for private sector participation in rail and port corridors and finalisation of the National Rail Bill.
The report nevertheless points to progress in opening the rail network to greater private sector participation, with several reforms beginning to move into implementation.
According to the report, the first slot allocation process for 11 private train operating companies could add 20 million tonnes of freight volumes from the 2027/28 financial year and support increased private sector participation in freight rail.
The report also projects freight rail volumes to increase to 168 million tonnes in 2025/26 from 160 million tonnes in the previous financial year as Transnet continues implementing its recovery plan. However, government’s medium-term target remains 250 million tonnes moved by rail as part of efforts to shift freight from road to rail.
Among the reforms highlighted in the report, Transnet has submitted a Public Finance Management Act pre-notification application for the establishment of the Transnet Infrastructure Manager (TRIM) as a subsidiary. Government describes this as a milestone in separating rail infrastructure and operations to enable competition in freight rail.
The Transport Economic Regulator (TER) also entered its initial phase of operations on April 1 ahead of full operations from the 2027/28 financial year.
Cabinet has meanwhile approved publication of the National Rail Master Plan for public comment. The plan is intended to guide the revitalisation, expansion and modernisation of South Africa’s rail system and support private sector participation.
On the ports side, a detailed implementation plan has been developed for the corporatisation of the Transnet National Ports Authority (TNPA).
