Following the release of the third progress report for Operation Vulindlela, several reform areas of direct relevance to the rail and freight logistics sector were highlighted.
According to the Operation Vulindlela dashboard, reforms are categorised as either on track or delayed/off track, but work underway.
Rail Reform Status Overview
The following rail-related reforms are currently assessed as on track:
- Restoration of passenger rail services
- Enabling open access to the freight rail network
- Introduction of private sector participation in ports and rail
Reforms assessed as delayed or off track, but with work underway, include:
- Restructuring of Transnet and the establishment of an independent National Ports Authority and Rail Infrastructure Manager
- Establishment of the Transport Economic Regulator
- Finalisation of the National Rail Bill to create a legal framework for a competitive rail sector
Freight Logistics Performance
In the freight logistics sector, Transnet maintained improved operational performance during the reporting period, reflected in higher rail volumes and continued progress with fleet renewal.
A key milestone was the signing of a long-term concession agreement for Durban Container Terminal Pier 2, aimed at unlocking investment in port capacity and technology. Preparatory work also continued to enable private train operations on the freight rail network. In addition, the technical assessment on the corporatisation of the National Ports Authority was completed.
Overall, the freight logistics system reform is assessed as 40 percent on track, with the remaining 60 percent categorised as delayed or off track, although work is underway.
Key Milestones in Q3 2025
During the third quarter of the 2025 financial year, several milestones were recorded:
- Transnet maintained improved performance, with interim results for the six months ended September 2025 confirming a 4.4 percent increase in rail volumes as part of its recovery programme. Progress continued on the fleet renewal programme, with 40 of the 240 locomotives still to be delivered by June 2026.
- A detailed technical assessment on the corporatisation of the National Ports Authority was completed. Subject to approval by the Minister of Transport, this will enable the legal separation of the authority in line with the National Ports Act and the Guarantee Framework Agreement.
- Transnet and International Container Terminal Services Inc signed a 25-year agreement for the upgrade, development and operation of Durban Container Terminal Pier 2. Effective from 1 January 2026, the partnership will enable investment of more than R11 billion in infrastructure, equipment and technology, increasing handling capacity from 2 million to 2.8 million twenty-foot equivalent units. This represents the first major private sector participation transaction following the adoption of the Freight Logistics Roadmap in 2023.
- Seven of the eleven train operating companies allocated slots are expected to commence operations on the freight rail network in the first quarter of 2027, following the allocation of 41 slots and ongoing work to finalise contracting.
Next Steps
Key actions scheduled for the coming months include:
- Publication of a revised Network Statement incorporating IRERC recommendations and updated access tariffs for implementation in the new financial year, scheduled for February 2026
- Finalisation of a detailed plan for the corporatisation of the National Ports Authority, following the technical assessment, expected by March 2026
- Operationalisation of the Transport Economic Regulator through the appointment of a Board and additional staff, targeted for April 2026
- Development of bid windows and the launch of the first phase of requests for proposals for private sector participation projects in strategic rail and port corridors, planned for June 2026.
