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South Africa Moves Forward with Rail System Overhaul

(MENAFN) South Africa’s state-owned rail operator, Transnet, has officially completed the evaluation process for appointing private train companies to integrate into the national rail network, the country’s Transport Ministry confirmed.

Transport Minister Barbara Creecy emphasized the move’s significance during a press briefing in Pretoria on Friday, stating, "It will contribute to a more efficient, reliable and sustainable rail system that can promote inclusive growth and ensure job retention and job creation."

The initial phase allocates 41 routes spanning six key corridors, primarily focused on hauling coal and ore. These newly onboarded operators are projected to increase freight volumes by approximately 20 million tonnes annually starting from the 2026-2027 financial year.

This development follows the cabinet’s endorsement of the National Rail Policy in March 2022, which authorized private sector involvement within the Transnet network while maintaining state ownership of the rail infrastructure.

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