Private rail operators likely to enter SA network by 2027

South Africa’s struggling rail network is set for a major shake-up, with private train operators expected to begin running on key freight rail routes by 2027.

The government has already allocated 41 rail slots to private companies, aiming to boost capacity, lower costs and reduce reliance on trucks.

But for train commuters dealing with unreliable and unsafe services, real improvements may still be years away.

Rail collapse pushes commuters off trains and onto roads

The country’s rail network has steadily declined over decades, with both freight and passenger services losing ground to road transport.

Only about 8% to 10% of public transport commuters now use trains, down from roughly 20% to 25% a decade ago.

At the same time, road freight has surged to dominate about 80% of goods transport, forcing more trucks onto already congested highways.

This has increased transport costs for households, with many commuters relying on taxis and buses instead of cheaper rail options.

Corruption and ageing infrastructure set rail back decades

Transport economist Ofentse Madisha said corruption and procurement failures have left the sector about 20 to 25 years behind.

He said ageing infrastructure and outdated locomotives worsened the crisis, with some trains previously averaging nearly five decades in age.

“From a development perspective, the infrastructure… is a multi-decade investment,” he said.

Madisha added that failed tenders and incorrect specifications further delayed efforts to modernise passenger rail.

Private operators to boost capacity and competition

The introduction of private operators is expected to add significant freight capacity and improve efficiency.

About 11 operators are set to enter the market by 2027, contributing an estimated 20 million tonnes of additional capacity.

The system will allow companies to buy ‘slots’ on rail lines, creating competition and forcing operators to optimise services.

“This will reduce costs over time and improve efficiency,” Madisha said.

He added that the model shifts rail away from a monopoly system, opening access to multiple operators.

The trucking industry faces disruption

The shift back to rail is expected to disrupt the trucking industry, which has benefited from rail’s decline.

However, road transport will still play a key role in ‘last mile’ delivery, which remains the most expensive part of logistics.

“Suppliers are trying to solve for moving goods long distance efficiently, then using road for the remainder,” Madisha said.

Train commuters face long wait for reliable rail services

While freight rail reforms are advancing, improvements for passenger rail commuters are expected to lag.

Madisha said investments in commuter rail and station upgrades could take up to a decade before delivering visible results.

“It could take about a decade before you and I see the actual benefits,” he said.

He warned that expectations must be managed, as rail projects typically take decades to fully deliver returns.

More transport options could ease pressure on commuters

Despite the delays, the expansion of rail, alongside buses and taxis, could eventually give commuters more affordable options.

New models, including integrated transport networks and station-based development, aim to improve accessibility and reduce total travel costs.

For now, millions of South Africans who rely on trains are still waiting for a rail system that actually works.

More on SA rail and train commuters:

PRASA targets train commuters with cheaper fares as fuel prices surge

Transport crisis hits commuters as Minister Creecy warns of taxi violence, rail challenges

Creecy hits back at claims Transport Dept is failing to act on PRASA corruption

Mitchells Plain train service resumes after 6 years

SONA 2026: Ramaphosa again puts high-speed passenger trains on national to-do list

For more information, listen to Madisha on 702’s Weekend Breakfast with Gugs Mhlungu using the audio player below: