By Kevin van der Merwe, acting CEO of the Road Freight Association
The Road Freight Association (RFA) welcomes the announcement by the Minister of Transport, the Honourable Barbara Creecy MP, regarding the outcome of Transnet’s Train Operating Company (TOC) slot allocation process. This is an historic and necessary step towards a more efficient national logistics system for South Africa.
For a long time, the RFA has maintained that the country's economic success is dependent on a well-integrated and collaborative freight logistics network. Both rail and road have critical roles to play in the efficient and cost-effective movement of freight in and through South Africa. This milestone in the rail reform journey is a clear signal that the government is committed to the structural reforms that will benefit the entire country. The first 11 private TOCs have been notified to engage with Transnet on the preparation of the contracts that will determine the conditions under which they operate, with the expectation of increasing the current Transnet volume from 160 million tons to 250 million tons annually, an increase of 90 million tons over the next 5 years.
The RFA supports this development that has the potential to optimise the capacity of Transnet through the introduction of privately owned third-party operators. This is a significant move with the potential to revitalise our rail network, reduce congestion on our roads by returning rail-friendly freight back to rail, while ultimately reducing the cost of logistics in South Africa. The Association recognises that freight movement on rail will create jobs in the rail freight sector and will necessitate partnerships with road freight operators to get freight to and from the train or multi-modal hubs.
While the announcement is a moment to be celebrated, the RFA must emphasise that this is the beginning of a long journey that started with the Cabinet’s approval of the National Rail Policy in March 2022. The success of this initiative will depend on a clear and stable regulatory framework, equitable access to efficient ports and other key infrastructure, and a shared commitment from all stakeholders to operational excellence.
The work lying ahead is substantial. The Department must ensure that the regulatory environment supports these new entrants, that the existing rail infrastructure is secured, maintained and improved expediently, and that the collaboration between road and rail is seamless. The RFA stands ready to work with the Department of Transport, Transnet, and the newly approved Train Operating Companies to build an integrated logistics system that is resilient, competitive, and serves the needs of all clients moving freight within and through South Africa.
The Road Freight Association will watch developments over the next 12 months with keen interest, and the expectation that the TOCs will start operating in the latter half of 2026. Developments such as this, have the potential to improve South Africa’s economy through employment opportunities and wealth creation for all its citizens, while positioning South Africa as an efficient, cost-effective, vibrant logistics hub, chain and developmental node for all modes of transport.
