State-owned freight and logistics company Transnet plans to invest R127-billion over five years on modernizing rail lines and upgrading ports, its CE Michelle Phillips said on Tuesday.

Transnet allocated R24-billion to infrastructure in the previous financial year and has budgeted R25-billion for the current year, Phillips said at the South Africa Tomorrow Investor conference.

"We will go to market for partners as well as for funders," Phillips said, citing potential projects such as the Richards Bay dry-bulk terminal and the Pier 2 container concession in Durban.

Transnet, a key player in South Africa's logistics sector, has faced challenges from aging infrastructure, which has hindered exports of key commodities such as coal and iron-ore.

Phillips said that maintenance shutdowns, including a ten-day closure of the iron-ore corridor, were underway to expedite repairs across coal, manganese, and container lines, aiming to improve reliability. Port upgrades, such as the installation of new cranes in Durban, are also part of the modernisation drive.

To bolster operations, Transnet is seeking partnerships with mining firms and exporters for direct investments, while pursuing private-sector participation programmes to attract strategic partners with expertise and capital. 

"We're currently working on a formal customer-collaboration policy that allows customers, because they've asked for it, to step in where we feel challenged," Phillips said. That included in areas such as funding and skills.

Future plans include finalising private sector participation projects, issuing an updated rail network statement for 2025/26, and granting approved train-operating companies access to the lines.