South Africa’s rail freight sector is showing promising signs of recovery, with freight volumes increasing significantly over the past two years. According to President Cyril Ramaphosa’s political report presented at the 5th National General Council of the African National Congress (ANC), freight volumes transported via rail have risen from 150 million tons in 2023 to 174 million tons in 2025.
“This marks a notable improvement following years of decline caused by state capture, mismanagement, and underinvestment in critical infrastructure,” he said.
The turnaround in rail freight operations is attributed to structural reforms led by the ANC-led government, which have focused on improving efficiency, reducing costs, and enabling private sector participation. Transnet, South Africa’s state-owned freight logistics company, has established a Rail Infrastructure Manager and opened capacity to private train operating companies on a concessionary basis, while retaining government ownership of rail infrastructure.
“The revitalisation of the rail sector is part of a broader strategy to enhance the country’s network industries, including energy, water, ports, and telecommunications. These efforts aim to lower barriers to entry, attract investment, and drive economic growth,” he said.
The government has set an ambitious target to further increase freight volumes transported by rail to over 200 million tons.
“This goal aligns with the ANC’s commitment to expanding infrastructure investment, which includes a record R1 trillion allocation over the next three years to renew roads, ports, rail, energy, and water systems.”
Ramaphosa said the improvements in rail freight capacity are expected to reduce reliance on road transport, alleviate congestion, and lower transportation costs for businesses. Additionally, the government’s focus on localising production and promoting black industrialists through infrastructure development is set to create new economic opportunities.
