Media statement on the announcement of the outcome of Transnet’s slot application process by Minister of Transport, Ms. Barbara Creecy (MP)
Members of the Media, Distinguished Stakeholders, Ladies and Gentlemen,
It is with great excitement that I stand before you today to announce that Transnet, through its operating division Transnet Rail Infrastructure Manager (TRIM), has completed the adjudication process to select new Train Operating Companies (TOCs).
This is a significant step in our rail reform journey and makes open access to freight rail a reality in our country. It will contribute to a more efficient, reliable and sustainable rail system that can promote inclusive growth and ensure job retention and job creation.
In March 2022, Cabinet approved the National Rail Policy which lays the basis for third party participation in the Transnet Network while the infrastructure remains state owned. The Rail Policy advances structural reforms that enable private sector investment; optimal utilisation of the rail network and effective economic regulation that facilitates equitable access to the rail network and ensures that it is properly managed.
The benefits of third-party access include, among other things, (i) improving utilisation of the network and thus increasing rail efficiency; (ii) reducing network unit costs by involving more operators; (iii) increasing revenue to contribute to investment in the maintenance and modernisation of the network, and (iv) reducing the external costs of freight logistics and improving the competitiveness of rail as a more environmentally friendly mode of transport.
The Roadmap for the Freight Logistics System in South Africa was approved by Cabinet on the 8th of December 2023. This document gave the Interim Rail Economic Regulatory Capacity (IRERC) the mandate to manage the consultation process on Transnet’s draft Network Statement.
The Network Statement serves as a foundational document that outlines the terms and conditions under which operators can access the rail network, thereby giving effect to third-party access and enabling private sector participation.
The first Network Statement and Tariff Determination were published on the 20th of December 2024. The application process for slots commenced promptly after the Network Statement was gazetted in December 2024.
Applications opened on 20 December 2024 and closed on 27 February 2025. The evaluation process has been rigorous and was conducted in full compliance with the standards of fairness and transparency.
Now, it is my pleasure to share with you the results of the evaluation process. Of the 25 TOCs who applied, eleven (11) have met the necessary requirements and will proceed to the next stage of negotiations and contracting. The initial allocations, on a total of 41 routes and six (6) corridors, are as follows:
- North Corridor: six new entrants, 15 routes for transportation of coal and chrome.
- Iron Ore Corridor: one new entrant, one route for transportation of iron ore.
- Cape Corridor: two new entrants, two routes for transportation of manganese.
- Northeast Corridor: six new entrants, 16 routes for transportation of coal, chrome, magnetite, fuel, containers.
- Central Corridor: one new entrant, two routes for transportation of coal, containers (manganese).
- Container Corridor: four new entrants, five routes for transportation of containers, coal, sugar.
The Transnet Rail Infrastructure Manager (TRIM) estimates that the new Train Operating Companies (TOCs) will carry an additional 20 million tonnes of freight per annum from the 2026/27 financial year. This will supplement Transnet Freight Rail’s (TFR’s) forecasted volumes and contribute to Government’s target of increasing freight moved by rail to 250m tons per annum by 2029.
The Rail Policy encourages rolling stock investment by the operating companies and the establishment of the rolling stock leasing companies by both state-owned companies and private entities. This could be a key intervention for revitalising rolling stock and unlock as much as R100billion in new investments.
New entrants who have met the requirements, will receive conditional award letters outlining award conditions, including the need to complete the Railway Safety Regulator (RSR) permit applications, rolling stock readiness, securing port offloading capacity and other operational processes. Durations of the
allocations range from one to 10 years, and operating companies can commence with operations once the relevant conditions have been addressed.
Next week TRIM will open applications for parties who wish to submit ad-hoc applications for additional or new route allocations in the current 2025/26 timetable period based on Volume 3 of the Network Statement on their website.
In due course, the Department of Transport will announce the date of publication of Volume 4 of the Network Statement, and when applications will open to apply for available slots for the 2026/27 timetable.
We will also be incrementally enhancing our regulatory framework to ensure that the slot allocation process is guided by certainty and responsive to our rail reform programme.
Ladies and Gentlemen, today’s announcement is not just about the allocation of rail slots — it is a step toward a future where our railways drive economic growth, job creation and sustainability.
I would like to take this opportunity to thank all those who contributed to the success of this process and are laying the groundwork towards an efficient rail system that addresses the needs of today while being future-orientated towards the needs of tomorrow.
I Thank you.
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