Transnet Projects 168 Million Ton Rail Volume for 2025/26 as Structural Reforms Target 250 Million Ton National Milestone by 2030

Transnet CEO Michelle Phillips projects 168Mt in rail volumes for 2025/26, highlighting private sector reforms as key to hitting the 250Mt national goal.

By: AXL Media

Published: Mar 24, 2026, 9:59 AM EDT

Source: The information in this article was sourced from Engineering News

Arresting the Rail Volume Decline

Transnet is poised to conclude the 2025/26 financial year with rail volumes totaling approximately 168 million tons. While this figure falls short of the ambitious "stretch target" of 180 million tons, it represents a significant improvement over the 149.5 million tons recorded in 2022/23. Briefing the Standing Committee on Public Accounts (Scopa), CEO Michelle Phillips attributed the stabilization to a rigorous 18-month recovery plan. This upward trajectory is viewed as a vital first step in restoring the reliability of South Africa's freight network, which has been severely hampered by maintenance backlogs and operational inefficiencies over the last several years.

The Role of Private Train Operating Companies (TOCs)

A cornerstone of Transnet's growth strategy is the integration of private-sector capacity into the national rail network. To date, 11 private Train Operating Companies (TOCs) have been conditionally awarded rights to operate across 41 routes and six major corridors. Phillips indicated that if these slots are fully utilized, they could add an additional 24 million tons to the annual rail volume. The first of these private operators are expected to begin physical operations by April 2027. By the end of April 2026, Transnet plans to finalize the list of TOCs that have met all regulatory and technical requirements, moving the country closer to its 250-million-ton annual goal.

Addressing the Locomotive Shortage

Despite the positive volume trends, Transnet continues to struggle with significant rolling stock constraints. Currently, 216 out of 481 locomotives procured from CRRC of China remain out of service due to a lack of spare parts, a situation exacerbated by an ongoing legal dispute with the manufacturer. While a "step-in" supplier has been contracted to repair a subset of 48 locomotives, progress has been slow, with only one unit delivered thus far. To mitigate this shortage, Transnet is moving to establish a dedicated "LeaseCo" which will lease surplus rolling stock to private TOCs, ensuring that available equipment is utilized to its maximum potential.