Cabinet's decision moves the ports authority out of the Transnet Group as part of the freight and logistics reforms, setting principles for compensating Transnet and allocating liabilities between the two entities.
The next step is the separation process itself, including the independent valuation of TNPA and its investigation of a minority equity partner from a development finance institution.
- South Africa's Cabinet has supported the separation of TNPA from Transnet as a stand-alone company owned directly by the state.
- Cabinet took the decision at its meeting on 23 September 2026, as part of an update on transport and logistics reforms.
- Cabinet approved that TNPA investigate the feasibility of a minority equity partner from one of South Africa's development finance institutions.
- Transnet is to receive fair compensation based on an independently assessed valuation of TNPA.
- Liabilities are to be allocated equitably between the Transnet Group and TNPA.
- The principles include preservation of strategic state ownership and control of national ports infrastructure.
South Africa's Cabinet has supported the separation of the Transnet National Ports Authority (TNPA) from Transnet, with the ports authority to operate as a stand-alone company owned directly by the state.
The decision formed part of an update received by Cabinet on the implementation of transport and logistics reforms intended to improve the operational performance, infrastructure reliability and competitiveness of South Africa's freight and logistics system.
Cabinet also approved that TNPA investigate the feasibility of introducing a minority equity partner from one of South Africa's development finance institutions.
According to the Cabinet statement, the separation will be based on a number of principles, including fair compensation for Transnet based on an independently assessed valuation of TNPA.
The process must also provide for the long-term financial sustainability of both entities and the equitable allocation of liabilities between the Transnet Group and TNPA.
Other principles identified by Cabinet include the protection of employees and customers, preservation of strategic state ownership and control of national ports infrastructure, and improved investment capability and infrastructure development.
