South Africa’s state-owned freight and logistics company, Transnet, announced plans to invest 127 billion rand ($7.3 billion) over the next five years to modernize its rail network and upgrade port facilities, Chief Executive Michelle Phillips said on Tuesday.
Speaking at the South Africa Tomorrow Investor Conference, Phillips revealed that Transnet had allocated 24 billion rand to infrastructure in the previous financial year and budgeted 25 billion rand for the current year.
“We will go to market for partners as well as for funders,” she said, highlighting potential projects including the Richards Bay dry-bulk terminal and the Pier 2 container concession in Durban.
Transnet, a critical component of South Africa’s logistics system, has long struggled with aging infrastructure that has hampered exports of major commodities such as coal and iron ore.
Phillips said maintenance shutdowns, including a 10-day closure of the iron-ore corridor, are currently underway to accelerate repairs across coal, manganese, and container lines, with the goal of improving operational reliability, according to Reuters.
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As part of its modernization efforts, Transnet is also installing new cranes at the Durban port and exploring partnerships with mining companies and exporters for direct investment.
The company is pursuing private-sector participation (PSP) initiatives to attract strategic partners with both expertise and capital.
“We’re currently working on a formal customer-collaboration policy that allows customers, because they’ve asked for it, to step in where we feel challenged,” Phillips said, noting that this would include support in areas such as funding and skills development.
Looking ahead, Transnet’s plans include finalizing PSP projects, releasing an updated rail network statement for 2025/26, and granting approved train-operating companies access to its rail lines.
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Image Credit: Business Tech
