The Western Cape Government has welcomed the announcement by National Minister of Transport, Barbara Creecy, confirming the completion of Transnet's adjudication process to select new Train Operating Companies (TOCs) through its Rail Infrastructure Manager.
Two new TOCs have been allocated to the Cape Corridor, which serves the Western Cape directly. Both operators will manage manganese routes originating in the Northern Cape's Hotazel and Postmasburg mining regions, transporting the mineral to the Port of Saldanha.
Saldanha Bay is South Africa's primary bulk export port and remains a strategic asset for the Western Cape economy. Strengthening manganese flows to Saldanha Bay is intended to support the port's competitiveness and shift heavy loads from road to rail.
Western Cape Mobility Minister Isaac Sileku said, "The Western Cape Government is encouraged by Minister Creecy's announcement. Opening access to our freight rail network is a critical step towards building a modern, efficient, and sustainable rail system that drives economic growth, creates jobs, and strengthens our province's role as a national and international trade hub. We look forward to working closely with Transnet, new operators, and the private sector to ensure that these reforms deliver real benefits to our communities and businesses."
According to the Western Cape Government, boosting rail capacity into Saldanha Bay will enhance supply chain reliability for exporters in agriculture, mining, and manufacturing. Improved freight services may also stimulate investment in rolling stock and terminals, unlocking private sector opportunities valued in the billions of rand (1 rand = US$0.056).
Western Cape Minister of Agriculture, Economic Development and Tourism Dr Ivan Meyer said, "This milestone marks a significant step forward in South Africa's rail reform journey and aligns powerfully with the Western Cape's Growth for Jobs Strategy. By enabling third-party access to our rail network, we are unlocking new opportunities for private sector investment, improving freight efficiency, and laying the foundation for inclusive, jobs-rich economic growth.
The allocation of new rail slots, particularly in corridors such as the Cape Corridor for manganese, will support the provincial government's strategic goals of boosting exports, enhancing competitiveness, and driving investment in key sectors like agriculture and agri-processing."
Minister Sileku concluded, "By opening the Cape Corridor to new operators, we can move more cargo by rail, ease pressure on our roads, and unlock growth at the Port of Saldanha that creates jobs across the Western Cape."
The Western Cape Government stated that following the announcement, the focus must shift to implementation. It urged the national government, Transnet, new operators, and cargo owners to move with urgency so the benefits of rail reform can be realised.
For more information:
Muneera Allie
Government of South Africa
Tel: +37 (0) 83 755 3213
Email: [email protected]
www.gov.za