Is it working?

Progress has been made but reforms are still being implemented and it is too early to assess effectiveness. Moshe Motlohi was appointed as the CEO of TRIM, with effect from 1 March 2025. Under Motlohi's leadership, TRIM has been actively involved in implementing the Freight Logistics Roadmap, the National Rail Policy and preparing for phase 2 of open access, which includes granting access to third-party train operators to use the rail network.TRIM publishes its own Network Statement, sets access tariffs (subject to regulatory approval), manages slot allocation and maintains commercial relationships with TOCs independently of Transnet Freight Rail. However, TRIM's budget remains subject to Transnet board approval, and it does not yet have separate debt-raising capacity or a discrete balance sheet.​

Actions

TRIM became a distinct division on 1 November 2023 and fully operational on 1 April 2025. This included transferring 14,000 staff from Transnet Freight Rail, appointing Moshe Motlohi as chief executive, and setting up independent budgets, systems and reporting. TRIM also published its first Network Statement and introduced an interim tariff-setting process.Actions under way

CorporatisationrnBy March 2026, TRIM will be established as a wholly owned Transnet subsidiary with its own board, legal entity and financial reporting. Work is under way on valuation, SAP and billing upgrades, and developing options for a sustainable capital structure, including potential government guarantees.

Regulatory frameworkrnThe permanent Transport Economic Regulator will be operational by March 2026 to oversee TRIM’s tariffs, investment plans and access regime, reducing Transnet’s direct control.


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Are there plans?

TRIM forms part of the freight logistics roadmap and National Treasury and the Presidency's second phase of reforms under Operation Vulindlela. OV 2.0's next steps focus on completing the preparatory work to establish the independence of TRIM.
rnOwnership models are under review
rnPolicy and industry debate continues on full ownership unbundling - transferring infrastructure assets out of Transnet to a new state-owned entity - or adopting an independent system operator model that retains ownership but separates operational control.
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rnPolicy direction
rnThe National Rail Policy supports government custodianship of the rail network, with access fees funding operations only. Implementation remains under discussion. The immediate focus is corporatisation by March 2026, while longer-term unbundling decisions will depend on Transnet’s recovery, open-access performance and fiscal capacity.

Is it on the agenda?

Yes, the concept of an independent infrastructure manager is part of the broader rail reform agenda, though less explicitly defined than the interim arrangements. The Economic Regulation of Transport Act establishes the Transport Economic Regulator (TER) which will provide independent economic oversight. The regulatory structure envisions independent infrastructure management with economic oversight by the TER.

Goals

The primary goal of establishing TRIM as a separate entity is to enable competitive access to South Africa's rail network by transitioning from a monopoly operator model to a multi-operator system where private train operating companies compete on equal terms with Transnet Freight Rail. This vertical separation - splitting infrastructure management from operations - addresses conflicts of interest inherent in vertically integrated monopolies, attracts private sector investment, and aims to reverse decades of rail decline by increasing freight volumes from below 150Mt to a target of 250Mt annually by 2029.​

Departments / Govt Institutions

Department of Transport Transnet

Is it working?

The interim infrastructure manager is operational and showing early signs of effectiveness. TRIM has successfully published the Network Statement and established rail access tariffs. The organisation has received "credible bids" from five private operators for 2.1Mt of rail capacity, indicating strong market interest. However, full efficacy assessment remains premature as the start date for third party operators remain uncertain.

Actions

•Cabinet approved the White Paper on National Rail Policy (March 2022) •The Economic Regulation of Transport Act was promulgated (2024) •TRIM was formally established (November 2023) •Senior leadership appointments were made, including CEO appointment •The Network Statement was finalised and published (December 2024) •Rail access tariffs for 2024/25 were developed and published •Consultation processes with stakeholders were conducted through IRERC

Are there plans?

Comprehensive plans have been developed and are being implemented. The draft Network Statement was published in March 2024, followed by extensive consultation processes. The final Network Statement was published on 20 December 2024, establishing the framework for third-party access. Rail operating company and infrastructure manager operating models and organisational designs are set to be finalised in 2025.

Is it on the agenda?

Transnet unbundling is part of the 2020 Economic Reconstruction and Recovery Plan and the 2022 White Paper on National Rail Policy.

Goals

The interim Transnet Rail Infrastructure Manager (TRIM) has been established with a mandate to manage rail infrastructure to improve rail capacity and access.

Departments / Govt Institutions

Department of Transport Transnet

Is it working?

Corporatisation is not yet in place, so its impact cannot be measured. Continued delays have raised doubts about TNPA’s legal status, with some arguing that contracts signed since 2006 could be challenged as the authority still operates as a division, not a subsidiary as the law requires. The immediate risk is prolonged regulatory limbo that deters investment and delays broader logistics sector reforms, requiring urgent ministerial intervention to either resolve the financial blockages or redesign the corporatisation model.

Actions

•The National Ports Act of 2005 was enacted, providing the legal mandate •Presidential announcement and ministerial approval were secured •Transnet Board has approved disposal plans for non-core assets as part of the process •The Ports Regulator has developed regulatory frameworks and methodologies •A ministerial Task Team has been appointed to address financial sustainability concerns •Work is under way on the memorandum of incorporation and registration documentation.

Are there plans?

Yes, forms part of freight logistics roadmap and OV2.0. In May 2025, after missing the April deadline, the Minister of Transport has appointed a task team to find solutions that protect Transnet's financial sustainability but no new timeline has been established. Technical preparations continue with the memorandum of incorporation under development and asset disposal plans approved, though Transnet has yet to finalise its non-core asset list.

Is it on the agenda?

Corporatisation remains firmly on the agenda, backed by the Sona framework, Operation Vulindlela, the Freight Logistics Roadmap and National Treasury’s conditions for Transnet guarantees. The legal framework exists, the Ports Regulator has set asset valuation rules and tariff methods and Transnet is preparing the memorandum of incorporation and registration. The Transnet Board has approved disposal of non-core assets to support the shift.

Goals

The corporatisation of Transnet National Ports Authority (TNPA) aims to make it financially independent, generate its own revenue and attract investment to boost port efficiency and trade competitiveness. Separating the port owner and operator into distinct subsidiaries is intended to strengthen TNPA’s regulatory oversight, foster private sector competition, cut costs and lift South African export competitiveness.