Ports and rail operator Transnet says it is making steady progress in stabilising and improving its operations, even as industry leaders call for faster structural reforms and greater policy certainty.
Speaking on the sidelines of the annual Mining Indaba in Cape Town, Transnet executives expressed confidence that the state-owned enterprise’s turnaround strategy is beginning to yield results. The company has faced years of operational and financial difficulties, widely blamed for constraining South Africa’s export capacity and costing the economy billions of rands in lost opportunities.
Transnet’s inefficiencies have been a major factor behind ongoing logistical bottlenecks, particularly in the mining sector, which relies heavily on rail to move bulk commodities to ports.
Rail Volumes in Sharp Decline
Between 2017 and 2022, South Africa’s rail freight volumes dropped dramatically by 77 million tonnes, reaching a low of 149 million tonnes. The decline highlighted the scale of the crisis within the country’s freight rail system and intensified pressure on the SOE to implement urgent reforms.
Now, Transnet says its recovery plan, coupled with increased private sector participation, could significantly boost volumes over the next few years. The company has set an ambitious target of moving 250 million tonnes of freight by 2030, nearly doubling the 2022 figure.
Freight Rail CEO Russell Baatjies indicated that interim milestones are already in sight. The company aims to reach 200 million tonnes by 2029, contributing to the broader 250 million-tonne objective set for 2030. Coal volumes alone are projected to reach 65 million tonnes as part of this recovery plan.
Rebuilding Confidence
At the Mining Indaba, Baatjies sought to reassure investors that Transnet is working towards operational stability and positioning itself as a reliable partner to the mining industry. Restoring rail performance is seen as critical not only for mining exports but also for broader economic growth.
While optimism is emerging around the turnaround strategy, industry stakeholders continue to emphasise the need for accelerated structural reforms and clear, consistent policy direction to ensure long-term sustainability.
Transnet’s ability to meet its recovery targets will be closely watched, as its performance remains central to South Africa’s trade competitiveness and economic recovery.
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