Barbara Creecy Details Major Reforms to Overhaul SA’s Rail and Freight Sector

“Prompt execution of reforms in the logistics sector is essential to address and reduce the risks present in both our global and domestic environments,” Creecy said.

South Africa is entering a critical phase in its national transport reform agenda, with bold strides underway to rejuvenate the passenger rail, freight logistics, and port infrastructure systems. This was the central message delivered by Minister of Transport, Barbara Creecy, during her Budget Vote address in Parliament on Wednesday morning.

Creecy outlined the Department of Transport’s ambitious reform programme, which is aimed at rebuilding the backbone of South Africa’s logistics system, restoring confidence in public transport, and positioning the country for economic growth, job creation, and regional trade competitiveness.

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Urgency of Reform in a Complex Global Environment

“Prompt execution of reforms in the logistics sector is essential to address and reduce the risks present in both our global and domestic environments,” Creecy said.

Acknowledging the shifting landscape of geopolitical tensions and global investment trends, Creecy emphasized that while external conditions may fluctuate, South Africa must act decisively to modernize its infrastructure and improve performance across all modes of transport.

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Clear Targets to Drive Change

Creecy presented a series of quantifiable goals that will guide transport reform efforts over the medium- and long-term:

• 250 million tons of freight to be carried on the Transnet rail network by 2029.

• 600 million annual passenger journeys by 2030, including metro rail, bus, and air travel.

• 42 million air passengers and 1.2 million tons of airfreight to pass through ACSA-managed airports by the end of the current political term.

• A 45% reduction in road fatalities by 2029.

• Improved port performance, including the speed of loading and unloading ships.

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Restoring Passenger Rail as a Public Good

The Passenger Rail Agency of South Africa (PRASA) has made significant progress in reviving commuter rail services. By the end of May 2025, 35 out of 40 corridors and service lines had been restored to operation. According to Creecy, PRASA recorded:

• 77 million passenger journeys in the last financial year.

• A projected 116 million journeys for the 2025/26 financial year.

A total of R66.1 billion has been allocated to PRASA over the medium term to support:

• Rail infrastructure maintenance and recovery

• Rebuilding of signalling systems

• Rolling out new train sets to priority corridors

• Increasing ridership among working-class commuters through competitive pricing models

“We intend to re-establish rail as the backbone of transport for people and goods,” Creecy declared.

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Revamping Freight Logistics and Ports

Creecy underscored the importance of revitalizing the country’s freight rail system, led by Transnet, to restore its operational effectiveness and global competitiveness. The department has finalized the Roadmap for the Freight Logistics System in South Africa, which affirms that core assets like rail lines and ports will remain publicly owned.

At the same time, private sector investment is recognized as essential to overcoming limited state fiscal capacity. To facilitate this, the Department:

• Concluded a Request for Information (RFI) process for five priority rail and port corridors

• Will issue Requests for Proposals (RFPs) beginning August 2025

• Is operating under a Cabinet-approved Private Sector Participation (PSP) Framework guided by the White Paper on National Rail Policy

“We must enhance the involvement of additional operators to expand freight logistics capacity beyond what the public sector alone can achieve,” Creecy said.

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Action Now, Not Later

Creecy made it clear that immediate action is being taken, even as PSPs undergo financial closure processes. She laid out current funding sources for urgent infrastructure upgrades, which include:

• Transnet’s budget for rail and rolling stock maintenance

• Submissions to National Treasury’s Budget Facility for Infrastructure

• Private customer agreements to refurbish or expand existing rail lines

These proactive measures are already bearing fruit:

• Port volumes increased by 54.28% in 2024/25 compared to the prior year

• Rail tonnage rose by 9 million tons

• 48,000 more containers were handled at South African ports

The Transnet War Room, a high-level operational response unit, was credited with driving these improvements.

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A Future of Integrated, Resilient Transport

Minister Creecy concluded by reaffirming the department’s commitment to creating an integrated, efficient, and inclusive transport system that supports the country’s broader developmental goals.

“To sustain our economy, we cannot afford to wait. We are laying the foundation today for a logistics system that will support a growing, competitive economy tomorrow,” she said.

Through a blend of public investment, private partnerships, and institutional reform, the Department of Transport aims to transform South Africa’s mobility systems into engines of productivity, sustainability, and social upliftment.