Is it working?

No action yet

Actions

Not drafted yet (but in the pipeline, OV2).

Are there plans?

This reform is now part of OV2.

Is it on the agenda?

Forms part of the freight logistics roadmap and is aligned with the White Paper on National Rail Policy.

Goals

To oversee rail infrastructure development, management and policy alignment.

Departments / Govt Institutions

Department of Transport

Is it working?

Yes, the IRERC has demonstrated substantive efficacy. It successfully managed the complex consultation process on the Network Statement, balancing stakeholder demands with Transnet's initial proposals to produce a "commercially responsible approach that is palatable for industry". The IRERC's review process resulted in significant tariff reductions. For example, the automotive transport tariff was reduced from the initially proposed R120 per train kilometre to more affordable differentiated rates. The final Network Statement published in December 2024 represents a marked improvement from the draft version, with tiered pricing that has been globally benchmarked.

Actions

The IRERC has been fully operationalised with dedicated secretariat staff and established procedures. Key actions include: • Managing the public consultation on Transnet's Draft Network Statement with 30-day comment periods • Conducting information gathering sessions in Durban, Cape Town and Johannesburg • Reviewing and approving tariff proposals from the Transnet Rail Infrastructure Manager (TRIM) • Facilitating stakeholder engagement between infrastructure managers and private operators • Successfully approving the final Network Statement and differentiated access tariffs for 2024/25

Are there plans?

The IRERC operates under the Roadmap for the Freight Logistics System, which provides detailed guidance on its functions and responsibilities. The framework includes specific timelines for consultation processes, stakeholder engagement protocols and clear pathways for transitioning regulatory oversight to the TER once established.

Is it on the agenda?

The IRERC is firmly on the government agenda. Cabinet approved the Roadmap for the Freight Logistics System in South Africa in December 2023, which mandated the IRERC to manage the consultation process on the Network Statement. The White Paper on National Rail Policy, approved by Cabinet in March 2022, formally established the IRERC framework.

Goals

The IRERC aims to guide strategic direction for implementing economic regulation in the rail sector and serve as an interim arrangement until the Transport Economic Regulator (TER) is established. Its primary objectives include managing consultation processes on Transnet's Network Statement, providing recommendations on access charges and facilitating stakeholder engagement between infrastructure managers and private sector participants.

References

• Reference Link One

Departments / Govt Institutions

Department of Transport Transnet

Is it working?

Too early to assess.

Actions

Key actions include:

Enacting the required legislation

Publishing calls for nominations for board members in August 2024

Establishing the appointment process requiring expert panels to compile short lists

Creating the legal structure for both the TER and TEC with defined roles and responsibilities

Setting qualification requirements for board membership including experience in transport, economics, law, accounting and governance

Appointing non-executive TER Board members (gazetted 24 October 2025)​

IRERC completing recommendations for 2025/26 Network Statement and Rail Access Tariff (submitted to Minister)​

Shortlisting 23 candidates for the Transport Economic Council, including four consensus candidates​

Preparing revised Network Statement and access agreement for publication in January 2026​

Are there plans?

The Economic Regulation of Transport Act provides the complete legal framework for the TER's establishment, including governance structures, appointment processes and operational mandates. The act establishes both the TER and the Transport Economic Council (TEC) as parallel independent but integrated regulatory agencies. Plans include the appointment of six non-executive board members and the establishment of executive structures.

Is it on the agenda?

The TER is firmly on the government agenda. The Department of Transport published board nominations in August 2024, with applications closing on 16 September 2024. The act has n ow been passed and the establishment of the TER is a central component of the government's structural reform programme.

Goals

The TER aims to consolidate economic regulation across all transport modes (road, rail, maritime, aviation) under a single regulatory framework. Its primary objectives include ensuring fair pricing, preventing monopolistic behaviour, promoting competition and providing transparent oversight of transport infrastructure access and tariffs.

Departments / Govt Institutions

Department of Transport National Treasury Operation Vulindlela Transnet

Is it working?

No action yet.

Actions

Limited information.

Are there plans?

Limited information.

Is it on the agenda?

Lack of clarity.

Goals

It is not yet known whether the policy has been proposed.

Departments / Govt Institutions

Department of Transport Transnet

Is it working?

The National Rail Bill has not yet been tabled in Parliament, so its effectiveness cannot be measured. However, the National Rail Policy White Paper (2022) – which mandates the bill – has enabled important structural reforms, including the Economic Regulation of Transport Act (2024), the Network Statement and third-party access allocations. While these policy-driven actions demonstrate progress, the bill's absence creates operational uncertainty over licensing, compliance and regulatory frameworks that could deter private sector investment and slow market entry.

Actions

The Economic Regulation of Transport Act is signed and operationalised; the Railway Safety Bill was passed by National Assembly and NCOP; and the National Rail Bill and Master Plan is under development, with ongoing stakeholder engagement.

Are there plans?

The Department of Transport's 2024/25 Annual Performance Plan identified obtaining ministerial approval to submit the National Rail Bill to Parliament as a key deliverable. However, no specific tabling date has been announced. Operation Vulindlela Phase 2 lists finalising the bill as a transport priority, but provides no timeline. The bill remains in the preparation stage within the department.
rn

Is it on the agenda?

Yes. The National Rail Bill is a key priority in Operation Vulindlela Phase 2, which identifies finalising the bill as essential for establishing a competitive rail sector framework. Minister Creecy confirmed in June 2025 that the bill was being prepared for parliamentary introduction. It features prominently in the Department of Transport's strategic planning and public statements on rail reform.

Goals

To translate the National Rail Policy White Paper (2022) into binding legislation, establishing the legal framework for competitive rail operations, licensing requirements, compliance standards and operational rules for infrastructure management versus train operations.

References

• Reference Link One

Departments / Govt Institutions

Department of Transport Operation Vulindlela Parliament The Presidency

Is it working?

The Master Plan is in a development phase with implementation frameworks being established. TRIM has developed a multi-source funding strategy to address the substantial investment requirements over the next five years to reach the 250 million tonne target. However, the plan faces significant funding constraints, with capital budgets for 2025/26 being reduced, highlighting the challenge of securing adequate resources for comprehensive network rightsizing. Substantive outcomes will be measurable only once the Master Plan is finalised and implementation begins.

Despite this, rail reforms are taking place, with meaningful progress now under way after years of audit-focused activity. The reform centres on three clear targets: moving 250 million tonnes of freight annually by 2029, achieving 600 million passenger journeys per annum by 2030, and improving port crane moves to 30 per hour.

Actions

Government is finalising the NRMP with the interim plan undergoing consultation through 2025 and final delivery was expected by end-2025.

A dedicated Private Sector Participation unit at the Development Bank of Southern Africa is preparing bid windows and requests for proposals. After receiving 162 responses to the first request for information, the first request for proposals was to be issued before end 2025, with three more in early 2026.

Private access to the rail network is now live. Seven train companies are expected to start operations in the first quarter of 2027rn

Are there plans?

Comprehensive planning is under way across freight, passenger and regulatory dimensions. The NRMP will serve as a 30-year strategic framework, anchored in National Transport Master Plan (NATMAP) 2050 Synopsis Update. It prioritises investment in the busiest corridors, supports market competition, and targets 220–250Mt of freight and over 600 million passenger journeys annually. Plans include state withdrawal from unviable lines, use of standard gauge for national routes, and devolution of commuter rail to cities, as shown by Cape Town’s business plan for managing its own rail services. Sona also announced plans to revive high-speed passenger rail on corridors including Johannesburg–Musina and eThekwini–Johannesburg.

Is it on the agenda?

Yes, rail reform features prominently in government's structural reform and economic recovery priorities.

The Roadmap for the Freight Logistics System in South Africa, approved by Cabinet in December 2023, provides the overarching framework. Rail revitalisation forms a key pillar of the Government of National Unity's Economic Reconstruction and Recovery Plan, with freight logistics identified as critical for inclusive growth and job creation.​

Current priorities include: finalising the National Rail Master Plan; publishing the National Rail Bill and completing the rail devolution strategy; implementing the fourth Network Statement for 2026/27 including the Rail Access Tariff; reaching financial close on PSP projects with bid windows announced and RFPs to market by end-2025; and achieving the 250 million tonnes freight target by 2029 and 600 million passenger journeys by 2030.

Goals

The NRMP is a 30-year strategy to revitalise the rail sector and build a more efficient, competitive and integrated system. It aims to boost rail’s competitiveness, efficiency and sustainability by 2050. It also aims to direct investment to priority corridors, support a shift from road to rail, and enable private train operators to enter the market. The plan aligns with the SADC regional strategy, advance climate resilience and guide reforms in governance, network investment and urban rail devolution -- targeting 250Mt of freight and 600 million passenger journeys per year.

Is it working?

No action yet

Actions

Although the TNPA has been reformed/restructured, these functions are yet to be applied as the transport economic regulator is yet to be established.

Are there plans?

None

Is it on the agenda?

Forms part of the freight logistics roadmap.

Goals

To remove the quasi-regulatory function from Transnet entities.

Departments / Govt Institutions

Department of Transport Transnet