During the recent Southern African Railways Association (SARA) CEO think tank panel, Russell Baatjies, Chief Executive Officer of Transnet Freight Rail (TFR), reflected on the organisation’s progress, challenges and future direction. He spoke about the process of reform, the ongoing recovery plan, and the steps being taken to modernise and grow South Africa’s freight rail system.
Rail Reform and Organisational Split
Baatjies explained that when the new Transnet board started more than eighteen months ago, a two-phased approach was adopted, focusing first on rail reform and second on recovery. He said that the outcome of the reform has been the split of the old TFR into two entities: TRIM, the infrastructure manager, and TFR, the operator. TRIM began operating in October 2023.
He acknowledged the difficulty of dividing an organisation that had operated as a monopoly for decades. TFR now applies for slots like any other operator. Baatjies said that although some volumes may shift between entities, the objective is not displacement but to build overall capacity, with the minister setting targets of 250 million tonnes and eventually 300 million tonnes.
Recovery Plan and Network Condition
Turning to the recovery plan, Baatjies said that the network is still in “ICU”, requiring upgrading and modernisation. He noted that much of South Africa’s signalling technology is 40 to 50 years old, and the system must catch up with global standards.
He said that one of the key constraints has been the loss of locomotive capacity. TFR currently has about 800 fewer locomotives than in 2019–2020. To address this, 48 locomotives are under repair, with the first expected to return to service within weeks. Further contracts for repairs are also being planned.
At the same time, new locomotives are being built in Durban by Alstom and Transnet Engineering. Forty-seven have already been delivered and deployed, particularly on the coal line, with a target of 90. These investments have led to visible improvements, with coal line volumes increasing and customers noticing better performance, although Baatjies emphasised that TFR remains far from where it wants to be.
Theft, Security and Organisational Mindset
Baatjies identified theft as a major challenge and said TFR is working with government, the police, PRASA, Eskom and other stakeholders to coordinate efforts against it.
He also underlined the need for a cultural shift inside Transnet. Most staff have only known a monopoly environment, but the company now has to compete with other operators. This requires employees to move away from the assumption that TFR will always have all the volumes it wants and instead focus on competing effectively.
Reinvention for Growth
Baatjies said that as TFR comes out of the recovery phase, it is moving into a “reinvention for growth” strategy. This involves modernising locomotives and systems, introducing digital radio technology, and implementing in-cab signalling. These measures, already standard in Europe and the United States, are necessary both to increase volumes and to improve safety by reducing severe incidents.
Financial Realities and Customer Partnerships
He acknowledged that financial headroom is limited. Maintenance is largely funded by TFR, with some government support, but partnerships with customers are becoming increasingly important. Customers have already shown a willingness to assist in rebuilding capacity, and TFR intends to continue working with them to fast-track recovery initiatives.
Baatjies noted that while progress has been made, there is still a long way to go. Reform, recovery, modernisation and cultural change remain essential for rebuilding South Africa’s freight rail system and ensuring its long-term growth and sustainability.
