South Africa is moving forward with major reforms to its rail logistics system, with new investments, partnerships and private sector participation designed to enhance mineral distribution across local and export markets.
The reforms will be highlighted at the upcoming African Mining Week (AMW) conference, taking place in Cape Town from 1–3 October 2025. A dedicated panel discussion, From Mines to Markets: Strengthening Trade and Connectivity for Africa’s Mineral Future, will focus on the readiness of the continent’s logistics sector to support increasing mineral flows.
Licences for new operators
In August 2025, South Africa approved licences for 11 new private operators to provide train and logistics services on the national rail network. Under the reform, state-owned Transnet will issue 10-year licences, encouraging private investment in infrastructure and unlocking an additional 20 million tonnes of freight annually from the 2026/27 financial year.
The step aligns with the government’s target of raising annual rail haulage to 250 million tonnes by 2029, covering both mineral exports and other essential commodities.
Strategic partnerships with mining firms
Transnet is also entering long-term agreements with mining companies to improve efficiency. In August 2025, the operator signed an agreement with Exxaro Resources to expand capacity between the company’s Leeuwpan coal mine in Mpumalanga and domestic, regional and international markets.
The deal supports Exxaro’s 2025 sales target of 38.3 to 42.4 million tonnes of coal, including up to 7.2 million tonnes for export, while advancing South Africa’s wider goals of export growth, GDP expansion and job creation.
Similarly, in July 2025, United Manganese of Kalahari (UMK) concluded a 10-year agreement with Transnet to transport manganese from its Northern Cape operations to ports for export. The partnership is closely linked to South Africa’s upcoming Critical Minerals Strategy, which aims to maximise the value of the country’s strategic resources.
Expanding rail and port capacity
Funding has also been allocated to strengthen logistics capacity. In July 2025, the government approved an additional R94.8 billion (USD 5.3bn) support package for Transnet, following an earlier R51 billion package in May 2025. International institutions are also contributing: the New Development Bank has provided a $278 million loan, while the African Development Bank has approved a USD 1 billion loan to modernise the country’s logistics backbone.
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