The Democratic Alliance has submitted a formal proposal calling for South Africa to abandon Transnet’s management of the country’s freight rail network and allow private companies to operate key rail lines through concessions, as the state-owned entity’s failures continue to cripple the economy.
In a submission on the Transnet Rail Infrastructure Manager’s latest Network Statement, DA transport spokesperson Dr Chris Hunsinger MP said the current plan allowing private operators to run trains on Transnet-controlled tracks does not go far enough to fix a broken system.
“TRIM’s current plan does not go far enough. It allows some private companies to run their trains on the network, but Transnet will still control the tracks, infrastructure and management of the network. This keeps the same failing system in place,” Hunsinger said stated.
R353-billion economic blow
Transnet’s rail performance has cost South Africa an estimated R353-billion, or roughly 4,9% of GDP, in 2023 alone, according to research by logistics consultancy GAIN. The bulk mining sector lost approximately R140-billion in export revenue between 2021 and 2023 during a global commodity boom that South Africa could not capitalise on due to rail constraints.
The state-owned company’s freight volumes collapsed from 226-million tons in 2016 to a low of 149,5-million tons in the 2022/23 financial year. Network availability dropped 52% and reliability declined 24% since 2017, driven by infrastructure deterioration, locomotive shortages, cable theft and vandalism that costs more than R4-billion annually to combat.
While volumes have recovered slightly to 160,1-million tons in 2024/25, this remains far below historical capacity and economic need. Transnet’s recovery plan, launched in October 2023, was only 38,5% complete by March 2025.
Private operators get limited role
In May 2026, Transnet concluded Rail Access Agreements with 11 private train operating companies to run services on five strategic corridors, potentially adding 24-million tons of annual capacity. However, these operators are expected to move only about 10% of targeted freight volumes by 2030, with Transnet retaining control of the vast majority.
The DA expressed concern that the tender process for these 11 companies was recently cancelled and must be redone, creating further delays. “This creates further delays when South Africa desperately needs more freight moved from roads onto rail. It also shows why private participation cannot depend on slow and uncertain processes controlled by Transnet,” Hunsinger said.
Concessions, not just access
The DA submission calls for private companies to be granted concessions to operate, maintain and invest in specific rail lines, rather than merely running trains on Transnet-managed infrastructure. The party has demanded clear timelines for when such concessions will be developed and implemented.
“Businesses, farmers, miners and exporters cannot keep paying the price for a freight rail system that does not work,” Hunsinger said, adding that the DA would continue pushing for private operators to take over key freight rail lines and get South Africa’s goods moving again.
The shift of bulk freight from rail to road has caused severe congestion at ports like Richards Bay, where more than 300 000 trucks annually choke access roads, while simultaneously damaging national road infrastructure not designed for heavy haulage.
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