On 23 July 2025, Western Cape Mobility Minister, Isaac Sileku, hosted the launch of the Overberg Freight Rail Business Case and Implementation Plan pilot project in Bredasdorp. The business case is the first step towards revitalising freight rail along one of the Western Cape’s most significant agricultural corridors.
The initiative, co-designed with agricultural producers, freight owners, logistics operators, investors, and government partners, aims to reconnect the Caledon farming hub with the Belcon Inland Terminal (Bellville Container Terminal) and the Port of Cape Town. Currently, this corridor moves 8.9 million tons of freight annually, almost entirely road-based, with 99.8% transported by truck and just 0.2% by rail (this includes all freight along the corridor, not just agricultural produce).
“The Overberg Freight Rail Business Case is about bringing freight rail back on track and creating a commercially viable, data-driven freight system that cuts logistics costs, reduces congestion on the N2, and positions the Western Cape to triple its export value by 2035,” said Minister Sileku.
“This project represents a turning point for our district. By unlocking rail, we are not just moving freight, we are attracting investment, creating jobs, and strengthening our region’s economy for the long term. The Overberg can once again be a thriving hub for trade, benefitting both our farmers and our communities, ” commented Overberg District Mayor, Sakkie Franken.
Stakeholders at the session expressed strong support for the initiative, acknowledging that while challenges exist, such as the current condition of the Overberg rail line, the process now underway will generate the insights and partnerships needed to overcome these barriers. The Transnet Rail Infrastructure Manager emphasised the need for targeted investment, public-private partnerships, and coordinated planning to bring the infrastructure up to standard and support a significant shift from road to rail.
The Business Case phase, led by the Western Cape Mobility Department, will run until June 2026. It will focus on validating freight volumes, assessing infrastructure capacity, and securing commitments from cargo owners. If the pilot proves viable, construction and phased operations will begin in late 2026, with a launch expected by 2028.
Key goals of the pilot include:
- Shifting at least 10% of corridor freight (900,000 tons per year) from road to rail, removing an estimated 40,000 truck trips from the N2 annually.
- Reducing exporters’ logistics costs by up to 30% for long-haul shipments, boosting competitiveness for Overberg crops and goods.
- Cutting freight-related carbon emissions by as much as 70% per ton.
- Attracting public-private partnerships to fund and operate services, with reliable two-way cargo flows, export goods outbound, and inputs like packaging and fertiliser inbound.
The project will also explore the long-term opportunity to close the 60 km Protem–Swellendam rail gap, which could expand the catchment area and improve network efficiency.
"Freight and logistics are the lifeblood for the seamless movement of goods from point of origin to final destination. With this Business Case, we aim to achieve our bold goal of moving freight from road to rail, one corridor at a time, " Minister Sileku concluded.
Insights from the Overberg pilot will inform the roll-out of similar rail-led logistics solutions across the province, solidifying the Western Cape’s role as South Africa’s leader in sustainable and export-driven freight logistics.
