South Africa Opens Rail Sector to Private Investors

South Africa is expanding private sector participation in the rail industry after receiving over 160 business proposals to develop export logistics and preparing to launch passenger transport initiatives. This is reported by the railway transport news portal Railway Supply.

Private Companies Show Strong Interest in South Africa’s Rail Projects

South Africa’s Department of Transport has reviewed responses to its March request for information (RFI) aimed at engaging private investors in rail, port, and intermodal infrastructure.

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A total of 162 proposals came from private firms, covering projects such as export corridors and logistics hubs. A new RFI focusing on passenger rail transport is expected in July.

South Africa Tackles Infrastructure Crisis with Private Sector Support

The ministry believes private capital is essential because public resources remain limited and state-owned entities struggle to fulfill key responsibilities.

Freight rail volumes illustrate the severity of the crisis. In the 2017/18 fiscal year, 226.3 million tons were moved, but by 2023/24, that figure had fallen to 151.7 million tons.

Accidents, aging infrastructure, and management failures remain key issues. Even with reform measures in place, freight volumes in 2024/25 are expected to reach only 165.4 million tons, according to the National Treasury.

Nevertheless, investor interest is growing. Business-led proposals range from track upgrades to the development of entirely new freight hubs.

Public-private partnerships are now seen as a critical path to resolving South Africa’s transport challenges and unlocking long-term economic growth.

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