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?

The TER is in an early setup phase with no operational regulatory activity reported. The OV Q4 2025/26 report confirms the TER will not be fully operational until the start of the 2027/28 financial year. No regulatory determinations, pricing decisions or access rulings have been issued. The Interim Rail Economic Regulatory Capacity (IRERC) continues to discharge tariff and access functions for rail in the interim.

Actions

The regulator is legally established, has a board and has entered initial operations, but has not reached functional readiness across its mandate.
TER-establishing provisions came into effect on 1 April 2025. Board appointments were gazetted in October 2025. The OV Q4 2025/26 report records that the TER entered its initial phase of operations on 1 April 2026, at which point provisions relating to complaints resolution also commenced. As of mid-2026, the board is focused on governance set-up, capacity development and regulatory system design. Broader regulatory powers across rail, ports, roads and aviation remain subject to further proclamation.

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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.

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 NRMP is still in draft form, with consultations to run to September.
There are bankability gaps that it needs to address - gaps that has been raised by stakeholders over the past two years. The plan's weaknesses cluster around three themes: funding without a committed architecture, institutional reform without execution capacity and commercial terms that remain unbankable.
The R1.9tn total investment requirement has no binding financial plan behind it. The Master Plan lists mechanisms – green bonds, land value capture, securitisation, development finance institution lending – without linking capital sources to specific corridors at specific points in time. Transnet's debt, peaking at approximately R157bn in 2025/26 with interest payments consuming most operating cash flow, is the elephant the plan does not confront directly. Until that debt is restructured and access charges fall to cost-reflective, road-competitive levels, private capital at scale will not materialise.
The Rail Access Agreement (RAA) remains the single most urgent problem. Five structural defects – no infrastructure manager maintenance obligations, asymmetric penalties, no service-level warranties, slot tenures too short for rolling stock debt, and no lender protections – have led banks and development finance institutions to decline to finance TOC operations under current terms. Network Statement Volume 4, which must resolve these issues has been delayed.
TRIM's PFMA pre-notification is a procedural step, not legal independence. The infrastructure manager remains inside the Transnet group at the very moment the freight rail monopoly is being opened, and Transnet continues to run PSP procurement without independent oversight. The TER will not be fully operational until 2027/28 – after critical PSP transactions must reach financial close.

Actions

Cabinet approved the draft NRMP for gazettal for public comment on 1 April 2026. Minister Barbara Creecy launched the public consultation process in Gauteng on 23 April 2026, marking the start of a national consultative process that will run until September 2026. After consultations close, the NRMP will be resubmitted to Cabinet for further consideration and approval.

The DoT is leading the plan's development through its Integrated Transport Planning branch, which is responsible for long-term, sustainable and integrated multimodal transport planning. A dedicated Rail Planning Component is to be established within the DoT to coordinate ongoing implementation once the plan is approved.

Are there plans?

The NRMP translates the National Rail Policy, approved by Cabinet in 2022, into a phased investment and implementation programme for both freight and passenger rail over the coming decades. It is designed to complement the Southern African Development Community (SADC) Regional Rail Master Plan.

Is it on the agenda?

The NRMP is firmly on the government's agenda. Cabinet approved the draft for public comment at its special meeting on 1 April 2026, and Operation Vulindlela logged this as a Q4 freight logistics milestone. Minister Creecy launched public consultations in Gauteng on 23 April 2026, with the process running until September 2026 before the plan returns to Cabinet for final approval. PRASA presented its own aligned rail master plan on the same day, though Transnet and TRIM have yet to signal equivalent strategic buy-in; their engagement with open access and private sector participation is driven more by financial necessity than by the NRMP's long-term vision. Political commitment is real, but the plan lacks statutory force until the National Rail Bill is passed, which Creecy only intends to take to Cabinet in 2026/27, leaving the NRMP without legislative backing for at least another 18 months.

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. It is targeting 250Mt of freight and 600 million passenger journeys per year.

References

• Reference Link One
• Reference Link Two
• Reference Link Three

Departments / Govt Institutions

Department of Transport National Treasury Operation Vulindlela The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet

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