South Africa’s two state-owned rail operators are experiencing very different fortunes as the country works to rebuild its rail network.
While Transnet Freight Rail is showing steady signs of recovery through improved freight volumes and operational performance, the Passenger Rail Agency of South Africa (PRASA) continues to face significant challenges in restoring long-distance passenger services.
The contrasting performances highlight both the progress and the obstacles facing South Africa’s broader rail reform programme.
Freight rail continues to recover
Transnet has recorded encouraging improvements in freight operations since the disruptions caused by the Covid-19 pandemic.
Last week alone, 165 coal trains reached the Richards Bay Coal Terminal, putting annual coal exports on course to reach approximately 65 million tonnes by the end of 2026.
Improved locomotive availability, stronger maintenance programmes and enhanced security measures have all contributed to the recovery. Authorities have also reported progress in reducing cable theft and vandalism, two longstanding problems that have severely disrupted rail operations over recent years.
Transnet Freight Rail now transports more than 170 million tonnes of freight annually, compared with around 140 million tonnes in 2022. Although this marks a significant improvement, volumes remain below the record 226 million tonnes moved in 2016 before years of underinvestment, infrastructure deterioration and criminal activity affected the network.
Coal, iron ore and general freight currently account for roughly equal shares of Transnet’s freight business.
Transport Minister Barbara Creecy has set an ambitious target of increasing total rail freight to 250 million tonnes by 2029, supported by the planned introduction of 11 private rail operators, some of which are expected to begin operations this year and in 2027.
To further improve network reliability, Transnet and PRASA are exploring radio-based in-cab signalling systems that would reduce dependence on traditional trackside copper cables, making railway infrastructure less vulnerable to theft while improving operational safety.
Passenger rail still faces major obstacles
Despite improvements in freight transport, PRASA has yet to restore any of South Africa’s long-distance mainline passenger services.
Creecy recently confirmed that no long-distance passenger trains are currently operating anywhere in the country.
The Department of Transport issued a Request for Information (RFI) in August 2025 seeking proposals to revive passenger services between Gauteng and Musina, Durban, and Mbombela.
However, the proposals received proved prohibitively expensive, with some estimated operating costs exceeding comparable air travel.
The department is also seeking an additional R35 billion from the National Treasury to modernise railway infrastructure, repair rail lines and upgrade signalling systems.
One proposal under consideration is greater operational cooperation between PRASA and Transnet by running mixed passenger-and-freight services on shared corridors. The approach could allow freight revenue to offset part of the cost of passenger operations while making better use of existing infrastructure owned by Transnet.
According to the Department of Transport, PRASA needs approximately 300 million passenger journeys annually to reach financial sustainability. During the 2025/26 financial year, the agency recorded around 101 million passenger trips, while its long-term objective is to reach 600 million annual journeys by 2030/31, restoring ridership to pre-pandemic levels.
Meanwhile, a team of transport specialists from the United Kingdom is assessing whether existing infrastructure could support train frequencies of every 15 minutes, rather than hourly services, improving efficiency without requiring entirely new rail corridors.
The government hopes these reforms will help place South Africa’s rail sector on a stronger and more sustainable footing before the end of the current administration in 2029.
Source: Department of Transport / Transnet / PRASA