The Road Freight Association (RFA) has welcomed the outcome of the Train Operating Company (TOC) slot allocation process, saying it marks a necessary step towards a more efficient national logistics system for South Africa.

RFA has long maintained that the country’s economic success is dependent on a well-integrated and collaborative freight logistics network, with both rail and road having critical roles to play in the cost-effective movement of freight.

Transport Minister Barbara Creecy earlier this month announced that 11 private TOCs had been shortlisted to operate on Transnet’s freight rail network, which grants them access to 41 routes and six corridors that are used for freight transportation.

The involvement of the private sector has the potential to optimise the capacity of Transnet, reduce congestion on roads by returning freight back to rail and reduce the cost of logistics in the country, the RFA states.

RFA CEO Kevin van der Merwe adds, however, that this is the start of a long journey, with its success hinging on a clear and stable regulatory framework to support the new entrants, equitable access to efficient ports and other key infrastructure, and a shared commitment from all stakeholders to uphold operational excellence.

For trade union Uasa, however, it is concerning that State-owned enterprises may need to rely on private investments to meet their targets and maintain financial viability.

Uasa says that Transnet, for one, has struggled to revitalise and generate sufficient revenue for independent operations despite receiving various interventions and bailouts from government.

“We hope the introduction of private companies will greatly benefit the enterprise, provided that corruption does not undermine the efforts in place to save it,” the union states.

While the Department of Transnet has yet to disclose the specifics of the agreement with the private rail operators, particularly what the private sector will gain in return for investing in public infrastructure, Uasa hopes the department will prioritise transparency in the regulations and that contracts will be established.

Both the RFA and Uasa say they remain committed to working with Transnet and the government to build an integrated logistics system that is resilient and competitive.

It is expected that the private train operators will start operating in the latter half of 2026.