South Africa’s ability to capitalise on its iron ore export potential rests on restoring the Sishen-Saldanha corridor where Transnet is investing R8.9 billion to recover lost rail capacity. But industry stakeholders warn that rail improvements alone will not be enough to strengthen the country’s competitiveness.
Train slot availability on the 861 km corridor has improved from 35 to an average of 49 per week with a target of 56 sustainable weekly slots, Transnet Rail Infrastructure Manager (TRIM) told Freight News. The restored capacity is expected to support annual throughput of more than 58 million tonnes of iron ore and seven million tonnes of manganese, depending on port capacity and rolling stock availability.
The long-term Ore Line Restoration Programme runs until 2030 with R2.2 billion allocated for restorative maintenance in the 2026/27 financial year. According to TRIM, the programme’s funding comprises R5.5 billion from Transnet and R3.4 billion from National Treasury’s Budget Facility for Infrastructure.
However, Afriforesight’s Head of Ferrous Commodities, Devon Allers, cautioned that the projected volumes represent annual throughput targets rather than entirely new capacity.
Transnet moved approximately 52.8 million tonnes of iron ore and 5.8 million tonnes of manganese along the corridor in the financial year ended March 2026, Allers told Freight News.
More reliable rail services would help exporters manage stockpiles, coordinate deliveries to ports and reduce logistics costs, he said. However, increased rail capacity would not automatically translate into higher exports if locomotive and wagon availability, as well as port operations, remain constrained.
The importance of addressing these challenges is reflected in Transnet’s own performance figures. According to Allers, Transnet reported that iron ore rail cycle times improved from 98 to 91 hours in the financial year ended March 2026 while Saldanha’s loading rate declined from 8.1 kilotonnes to 7.7 kilotonnes per hour.
Complementary investment is underway. During an October visit to the corridor, Transport Minister Barbara Creecy outlined R1.47 billion in ore line rolling stock maintenance, comprising R752.3 million for wagons and R721.9 million for locomotives. She also highlighted an approximately R750 million bulk power upgrade at Saldanha to support the operation of the terminal’s third tippler and higher export throughput.
Beyond limiting the movement of existing export volumes, the corridor’s under-performance is also affecting mining production, Minerals Council South Africa Chief Economist Bongani Motsa told Freight News.
Motsa pointed to an 8.7% decline in South African iron ore production between January and August 2026 compared with the same period in 2025, arguing that domestic logistics constraints are contributing to the decline.
The corridor’s installed capacity exceeds current throughput. Restoring its performance could allow producers to increase output, he said.
“There needs to be continued collaboration between Transnet and mining companies,” Motsa said.
He also highlighted arrangements that allow customers to contribute to infrastructure improvements and accelerate the procurement of critical rail materials.
Such cooperation includes a mutual cooperation agreement between the Ore Users’ Forum and Transnet, which Kumba Iron Ore said enables urgent maintenance to be carried out more efficiently. Transnet has separately explained that exporters can assist with faster procurement of materials and be reimbursed through offsets against existing commercial agreements.
With South African exporters facing competition from Australia, Brazil and Guinea’s developing Simandou project, reliable and affordable logistics will become increasingly important to maintaining the country’s position in international markets, Allers said.
