Rail freight service provider Traxtion has confirmed finalising a R3.4 billion rolling stock investment programme aimed at expanding freight capacity and supporting South Africa’s rail reform agenda.
The programme, which includes R1.8 billion for locomotives and R1.6 billion for wagons, represents the largest private freight rail investment in South Africa’s history in terms of fleet size and value.
It is expected to create at least 662 direct jobs during construction and deployment and will meet a minimum 60% local content target, addressing roughly 5% of the national freight rail capacity shortfall.
The investment comprises 46 Wabtec diesel-electric locomotives purchased from KiwiRail in New Zealand. Forty-two U26C locomotives will be partially modernised, while four C30-8MMI units will undergo full modernisation.
Working with Wabtec, Traxtion will upgrade the U26C fleet to C30MEI specification, featuring brand-new fuel-efficient engines and advanced Brightstar control systems, enhancing tractive performance and reliability. All upgrade work will take place at Traxtion’s Rail Services Hub in Rosslyn, fostering local manufacturing and supplier participation.
The locomotives will be shipped in four tranches between April 2026 and August 2027, with each batch undergoing a four-month modernisation cycle that includes engine upgrades, major six-yearly services, and full repainting. The first upgraded locomotives are scheduled to enter South African mainline operations in the third quarter of 2026, marking a historic milestone for the company.
“Private capital flows when Government policies create confidence in the private sector to invest. This investment is our vote of confidence in South African rail and in the reform momentum we are seeing,” said James Holley, CEO of Traxtion.
“Every additional locomotive we put to work lowers logistics costs, protects the road network, improves our environmental footprint, and creates jobs in the upstream economy.”
Traxtion has structured the programme to maximise South African industrial value-add, including local assembly, supplier development, and skills transfer, while ensuring modern locomotives and wagons are brought into service quickly. The company expects that all wagons will be domestically manufactured by its existing trusted suppliers.
Key benefits of the investment are:
- Capacity where it is needed: High-capacity, reliable locomotives and wagons dedicated to high-demand bulk and container flows, easing pressure on ports and key corridors.
- Local content and jobs: At least 60% local content across the programme, creating a minimum of 662 direct permanent jobs.
- Supplier ecosystem growth: Multi-year demand for components, maintenance, and technical services to strengthen South Africa’s rail services and manufacturing base.
- Skills and safety: Training and certification for operating crews and technical teams, supported by Traxtion’s Government-accredited Rail Training Centre at Rosslyn.
The announcement comes amid South Africa’s rail reform programme, which includes the separation of infrastructure and operations and the development of economic regulation.
“We welcome the progress to date and the leadership shown by the Department of Transport and the Interim Rail Economic Regulatory Capacity,” said Holley.
“We are preparing to unlock significantly more investment, but this depends on the next Rail Access Agreement being fully bankable, with service-level guarantees, legal protections, and clear recognition of lender rights.”
Harith, a long-term investor in Traxtion, highlighted the investment’s transformative potential.
“This programme sets a new benchmark for how private investment, aligned with policy certainty and local value creation, can deliver transformative outcomes for South Africa and the continent,” said Sipho Makhubela, CEO of Harith.
Traxtion’s R3.4 billion investment is part of a larger R5 billion private-sector commitment announced alongside the National Rail Policy in 2022. The expansion is expected to generate multiplier effects across mining, agriculture, manufacturing, and export logistics, as freight shifts from road to rail.
“Efficient rail movement benefits the whole economy. This programme is about getting South Africa’s freight system working for growth and demonstrating that private-sector investment, aligned with reform, can deliver fast, measurable gains,” concluded Holley.
