Is it working?

Partially effective. The unit has been successfully established at the DBSA and launched a well-received RFI process that attracted 162 responses, including significant international interest. However, the first Request for Proposal, originally expected before end-2025, has not yet been issued, indicating implementation delays. The real test of effectiveness lies ahead: whether the unit can successfully structure and execute PSP deals that attract investment and improve network performance. With commercial close timelines extending to 2.5 years, operational gains remain distant, anticipated only by 2027–2028.

Actions

Cabinet approved the Rail PSP Framework in December 2023. The Department of Transport finalised a memorandum of agreement with DBSA and National Treasury, establishing the permanent PSP Unit at DBSA by mid-2025. The unit launched RFIs in March 2025 for five priority rail and port corridors, receiving 162 responses.

Are there plans?

The unit plans to issue the first Request for Proposal for freight rail and port PSP opportunities, followed by three additional RFPs in the first half of 2026. These will translate RFI responses into formal bid packages for the three priority corridors: Northern Cape, Richards Bay and the Gauteng–Durban intermodal route.
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Is it on the agenda?

Yes. The PSP Unit is a priority in Operation Vulindlela Phase 2, which targets expanding private sector participation in ports and rail beyond Durban. It features prominently in Cabinet statements, ministerial speeches and the Freight Logistics Roadmap. President Ramaphosa has publicly highlighted its establishment as key to transport reform.

Goals

The Department of Transport aims to establish a dedicated Private Sector Participation (PSP) unit to identify and prioritise projects and develop an implementation plan to facilitate PSP initiatives, particularly for Transnet and Prasa.

References

• Reference Link One
• Reference Link Two

Departments / Govt Institutions

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

Is it working?

Mixed results with significant implementation challenges. Eleven new train operating companies have been allocated slots on 41 routes covering six strategic corridors, demonstrating market interest. However, the 2025/26 tariff implementation has been delayed by nine months, with the minister extending 2024/25 tariffs "until further notice" in March 2025.

Private operators face commercial uncertainty as tariff determinations continue through ministerial processes rather than independent economic regulation. The IRERC finalised and submitted its recommendations for the 2025/26 Network Statement and Rail Access Tariff to the minister in October 2025, with publication now scheduled for January 2026. However, the government has not indicated whether it will bridge the funding gap through direct subsidies or equity injections, leaving the core tension between Transnet's cost recovery needs and private sector affordability unresolved.

Actions

The IRERC finalised and submitted its recommendations for the 2025/26 Network Statement and Rail Access Tariff to the Minister of Transport in October 2025. A revised Network Statement is scheduled for publication in January 2026 – nine months late. The TER is scheduled for operationalisation in March 2026 following the appointment and gazetting of non-executive board members in October 2025.

Are there plans?

Revised tariffs scheduled January 2026, TER operationalisation March 2026. However, the R7.4bn funding gap remains unresolved without government subsidy commitment.​

Is it on the agenda?

Access pricing remains a central reform priority in Operation Vulindlela and government policy. However, implementation delays and unresolved funding gaps expose fiscal and commercial viability tensions.

Goals

The primary aims are to establish a transparent, fair and sustainable pricing regime for third-party access to the rail network to enable private sector participation, foster competition and improve efficiency and service quality.

References

• Reference Link One
• Reference Link Two

Departments / Govt Institutions

Department of Transport National Treasury The Presidency Transnet

Is it working?

As of January 2026, the reform shows early promise but limited impact. Eleven private operators have been allocated 41 routes, yet no commercial operations have started. Strong market interest, with 98 applications, demonstrates private-sector appetite. However, tariff uncertainty, network capacity constraints (revised to 180m tonnes), funding shortfalls (R65bn needed, half available) and Transnet’s financial distress continue to deter investment. The reform has created the structural framework for privatisation, but operational delivery and economic benefits remain unrealised pending 2026/27 implementation.

Actions

Actions to date include: Publication of the final and revised Network Statement; Launch of the formal application process for private sector access to rail slots; Establishment of the Transport Economic Regulator and interim regulatory capacity. With third party operators, initial negotiations are under way to set precedents for future private sector access. The success of the first batch of agreements - addressing issues like network condition, fee setting and rolling-stock arrangements - will shape further private participation in South African rail.

Train Operating Companies: Through publication of the Network Statement in December 2024, TRIM made slots available across the freight rail network to private train operating companies (TOCs). Of 98 applications received, 11 new TOCs have been allocated slots on 41 routes covering six strategic corridors. TRIM estimates that the new TOCs will carry an additional 20 million tonnes of freight per annum from the 2026/27 financial year.

Are there plans?

The finalised 2025/26 Network Statement (effectively version 4.0) will be published following ministerial approval, expected early 2026 once IRERC completes its review. Implementation would commence 1 April 2026 alongside TRIM's independence milestone and the Transport Economic Regulator's operationalisation. The revised Network Statement will maintain version 3.0's tiered tariff structure but incorporate stakeholder feedback addressing affordability concerns and private operator viability.
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Is it on the agenda?

The Network Statement is a mandatory deliverable under the White Paper on National Rail Policy (March 2022), the Freight Logistics Roadmap (Cabinet approved December 2023) and Operation Vulindlela Phase II. Version 3.0 was published 20 December 2024 on schedule. Transport Minister Barbara Creecy has publicly championed it. The IRERC is actively managing the 2025/26 consultation process (information gathering completed February 2025).

The only uncertainty: Timing of version 4.0 (2025/26) depends on resolving tariff methodology disagreements through the IRERC consultation process. However, delay reflects technical complexity and stakeholder engagement rigour, not lack of commitment. Publication is expected early 2026.

Goals

The Network Statement goal is distinct but complementary to TRIM's structural goal. While TRIM's goal is institutional separation, the Network Statement's goal is to operationalise that separation by creating the rulebook for open access.​rnSpecifically, the Network Statement establishes transparent frameworks for third-party train operating companies (TOCs) to access Transnet's rail infrastructure on non-discriminatory terms. It sets out technical specifications, capacity allocation procedures, charging principles, tariff methodologies and interface requirements between infrastructure manager and operators. The goal is to translate TRIM's structural neutrality into practical market access, enabling private operators to compete fairly, improve service quality, reduce logistics costs and migrate freight from road to rail. Without the Network Statement, TRIM's institutional independence would be meaningless; with it, the monopoly truly breaks and competition becomes possible.

References

• Reference Link One
• Reference Link Two

Departments / Govt Institutions

Department of Transport Transnet

Is it working?

While it is too early to assess the impact of this reform on port operations and volumes, the reform is attracting strong private‑sector interest and demonstrating clear capacity to deliver deals. ICTSI’s R11bn commitment, the R17bn Richards Bay liquid‑bulk concession with five preferred bidders announced in May 2025, and active procurement at Ngqura and Cape Town show that the port public–private partnership framework is drawing capital and international operators. The real test will be whether efficiency targets – doubling ship working hours and raising crane moves from 18 to 28 per hour – are achieved over the next 12–24 months, and whether these gains translate into lower logistics costs and sustained investor confidence.

Actions

Transnet ran a multi-stage tender process, awarding DCT Pier 2 to ICTSI with an R12bn investment commitment in a joint venture (Transnet 51%, ICTSI 49%, management control to ICTSI). The Competition Commission approved the deal in October 2024 (conditional on no retrenchments for three years), and the KwaZulu-Natal High Court upheld the award in October 2025 after APM Terminals' legal challenge. The concession agreement was signed in December 2025 and took effect 1 January 2026

Are there plans?

Transnet National Ports Authority has issued requests for proposals for the Maydon Wharf multipurpose terminal (25-year concession) and plans to re-issue an RFP for Ngqura port.
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Is it on the agenda?

Yes, port concessioning is firmly established as a strategic priority. The reform forms part of Transnet's broader port strategy and is aligned with government infrastructure development objectives. It receives support from government and industry stakeholders who recognise the urgent need for port efficiency improvements and is integrated into the broader logistics transformation agenda.

Goals

The goal is to address Durban port's poor performance by establishing a partnership with a private terminal operator to upgrade DCT Pier 2, South Africa's biggest container terminal. The reform aims to attract private sector investment and operational expertise to improve efficiency, modernise infrastructure and enhance competitiveness at South Africa's busiest container facility.

Is it working?

Early signs are encouraging but substantive impact remains unrealised. The concessions have attracted private interest, with multiple competitive bids submitted for Richards Bay and Ngqura terminals. Interest came from companies like the Saudi Arabian ports operator Red Sea Gateway Terminal International reportedly considering partnerships for Maydon Wharf. Most concessions remain in procurement or negotiation phases rather than operational implementation. Only Cape Town's liquid bulk terminal has reached financial close. The real test – whether private operation delivers measurable efficiency gains and cost reductions – lies ahead, likely materialising from 2027 onwards as contracts commence.

Actions

A private partner has been selected for Cape Town port. A public-private partnership agreement has not yet been signed and commercial work is yet to begin. Multiple RFPs have been issued across different ports since 2023.

Are there plans?

Multiple concessioning plans are being implemented.
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rnTNPA issued five separate RFPs (December 2023–June 2025) for Richards Bay, Cape Town, Ngqura and Maydon Wharf terminals and selected preferred bidders in May–October 2025. In October 2025, it signed a terminal operator agreement with FFS Tank Terminals for to operate and maintain a liquid bulk terminal in Cape Town. Similar processes are under way for other port facilities across the system.

Is it on the agenda?

Port concessioning is a strategic priority under Operation Vulindlela Phase II and the Freight Logistics Roadmap. It was also reference in the Sona of 2025 and in ministerial statements. It also aligns with the TNPA's mandate for private sector collaboration and revenue diversification. National Treasury conditions for Transnet guarantees include advancing port reforms.

Goals

To unlock private capital and operational expertise to modernise ageing port infrastructure, improve efficiency and reduce logistics costs. It aims to attract private terminal operators under 25-year concessions while retaining public infrastructure ownership. Additionally, the goal is to address South Africa's poor global port performance (Cape Town ranked 405th of 405 ports in 2024) and enhance export competitiveness and economic growth.

Is it working?

Not yet fully implemented.

Actions

Having opened rail slot applications (between December 2024 and February 2025), TRIM's next process is to select private train operating companies (TOCs) to access its rail network after evaluation. The final Network Statement was published in December 2024.

Are there plans?

This forms part of the freight logistics roadmap.

Is it on the agenda?

Freight rail reform

Goals

The Network Statement sets out the rules, timelines, procedures, services, charging principles and terms and conditions governing the use of railway infrastructure by third-party operators.

Departments / Govt Institutions

Department of Transport Interim Rail Economic Regulatory Capacity

Is it working?

While this plan is not yet published, some components are being implemented, such as Transnet preparing private sector partnerships in selected corridors as well as third party rail access agreements moving forward.

Actions

The FRRMP underwent extensive stakeholder consultation in January 2024 at a colloquium, where a draft plan was workshopped with government and private sector participants. The interdepartmental steering committee approved the draft FRRMP before this colloquium.​Following the colloquium, the department continued refining the plan. By March 2024, the document had been finalised and was undergoing vetting for legal certification.​

Are there plans?

Yes, the FRRMP emerged as a subcomponent of the Freight Logistics Roadmap (FLR) approved by cabinet in late 2023 and forms part of the broader transport sector reforms aimed at introducing private sector participation.
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rnHowever, it is not yet a published policy. Government references describe it as a strategy under development, though drafts have been shared with other spheres, such as Gauteng’s Integrated Transport Master Plan, for planning purposes.

Is it on the agenda?

Forms part of the Department of Transport's broader plans for the transport sector - featuring in both DOT's Strategic Plan for the fiscal years 2025-2030 as well as recent performance plans (2023/24 and 2024/25).

Goals

The FRRMP aims to shift South Africa’s freight transport from trucks to rail to cut logistics costs, ease pressure on roads and reduce emissions. Compared to the FLR, FRRMP has a narrower, more operational mandate focused specifically on:

a. Achieving an equitable land surface transport modal splitrnb. Migrating rail-friendly cargo from road back to railrnc. Directing infrastructure investment to ensure rail capacity

References

• Reference Link One
• Reference Link Two

Departments / Govt Institutions

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

Is it working?

The initial allocations aim to add 20 million tonnes per annum from 2026/27, with companies like Grindrod and African Rail Company among the successful applicants. While it is too early to say whether they will succeed, the process has shown significant interest from the private sector to participate in rail freight operations.
Non-selected applicants for the 2025 round may reapply when new slots become available in the 2026/27 timetable. Successful firms must secure railway safety permits, have operational rolling stock and offloading capacity at ports. Slot durations will range from one to 10 years. Ownership of tracks remains with the state -- Transnet will act as both competitor and contract issuer.

Actions

The government established TRIM as an interim infrastructure manager within Transnet to oversee network access and slot allocation. The Economic Regulation of Transport Act was promulgated to provide the legal framework for third-party access, and the Transport Economic Regulator was created to determine price controls and regulate compliance. In December 2024, a Network Statement (volume 3) and 2024/25 tariff determination were published but contested. An updated network statement and tariff determination remain pending.
Slot allocation and operator selection: TRIM processed 98 applications during the first round (December 2024 to February 2025) and selected 11 operators from 25 applicants after safety, technical and financial assessments. The selected companies received conditional award letters requiring Railway Safety Regulator permits, rolling stock readiness and port capacity confirmation before operations can commence.

Are there plans?

Near-term: Volume 4 of the Network Statement for the 2026/27 timetable will be published, with applications expected to open subsequently. Contract negotiations between selected operators and TRIM will last three to six months, with first the private locomotives expected to haul freight by the second half of 2026.

Medium-term targets: Most operators are targeting full commercial operations in 2027–2028. The initial allocations aim to add 20 million tonnes of annual capacity (approximately 11% of current volumes) from the 2026/27 financial year. Government expects to unlock up to R100bn in private investment in wagons, locomotives and sidings over the next decade.

Government is finalising the National Rail Master Plan, a 30-year comprehensive framework to guide rail sector transformation that will complement the SADC Regional Rail Master Plan.

Is it on the agenda?

The reform is embedded in Operation Vulindlela Phase II, with the Department of Transport driving implementation. It is also embedded in National Rail Policy of 2022, the Freight Logistics Roadmap and Transnet's own turnaround plans.

Goals

Third-party rail access aims to introduce competition into the previously monopolised freight rail market, enabling private operators to compete with state-owned services and provide enhanced customer offerings.

References

• Reference Link One
• Reference Link Two

Departments / Govt Institutions

Department of Transport National Treasury Operation Vulindlela Transnet