Transport Minister Barbara Creecy has confirmed that major private sector participation (PSP) projects in the freight logistics sector will be brought to market in the current financial year and that the first private train operating companies (TOCs) will begin operating from April 2027.

Delivering the department’s R102-billion Budget Vote the day before the identities of the first 11 TOCs were due to be formally announced, Creecy said these private operators could be expected to move 24-million tons of cargo yearly once fully operational.

Government has set a goal of raising rail volumes to 250-million tons by 2030 and has indicated that Transnet Freight Rail (TFR), which last year transported about 165-million tons, will not be in a position to meet that target alone.

The introduction of the first TOCs had been facilitated by the creation of the Transnet Rail Infrastructure Manager, or TRIM, which published an inaugural Network Statement in 2024 opening the freight rail network to third-party operators.

The first 11 TOCs were selected following a bidding process in 2025 and could be awarded a total of 41 routes across six corridors once commercial processes have been finalised.

TRIM is due to provide an update on the status of these TOCs on May 13.

“I can share with you that, tomorrow, TRIM will announce the names of the first 11 private operators who aim to move 24-million tons of freight per annum, starting from the first of April next year.

“We believe that this will ensure that more South African minerals, vehicles and agricultural produce reach international markets, securing jobs and earning much needed revenue for our fiscus.”

Creecy added that the long-awaited Transport Economic Regulator would also be created in the current financial year, which would further level the playing field for all operators by having port and rail fees independently determined.

On the infrastructure front, Creecy reaffirmed that three PSPs would be released into the market during the year, including the Richards Bay Dry Bulk Terminal, the Ngqura manganese export corridor and the container corridor between Gauteng and KwaZulu-Natal.

In the previous financial year, the legally-delayed PSP at the Durban Pier 2 Container Terminal was implemented with International Container Terminal Services Incorporated, of the Philippines, which Creecy said had established a bankable model for future PSPs.

In parallel, Transnet was increasingly accessing the National Treasury’s Budget Facility for Infrastructure (BFI) to fund capital projects.

Creecy said that R16.8-billion in public investment had already been approved and was in execution across the coal, iron-ore and port networks and that applications for a further R23.6-billion in BFI funding would be submitted in future.

“Since the adoption of the National Rail Policy in 2022 and the Freight Logistics Roadmap in 2023 rail and port reform have been at the centre of our agenda to build an integrated and sustainable transport system,” she said.

In addition, consultations were under way on a National Rail Masterplan, while work was progressing on a National Rail Bill, for which Creecy aimed to secure Cabinet approval to introduce into the Parliamentary process in the coming months.

The legislation is expected to create the legal framework for sustaining the reforms that are currently being pursued as a policy agenda of government.