• South Africa plans to invest $121 billion in rail modernization by 2050.
• Freight demand exceeds current rail capacity by over 100 million tonnes annually.
• Reform strategy includes private sector participation and network restructuring.

The government plans to commit nearly 2 trillion rand (about $121 billion) to fully modernize the rail network by 2050. The Transport Ministry approved the draft master plan earlier this month and officially launched a public consultation phase on Thursday, April 23, 2026.

The master plan identifies a sustained deterioration of the rail system over recent decades. This decline has significantly reduced both freight and passenger volumes.

Authorities said more than 100 million tonnes of freight have shifted from rail to road. At the same time, suburban rail usage remains below levels recorded since 1997.

The ministry said inadequate signaling systems are constraining performance. The ministry added that vandalism, particularly during the COVID-19 pandemic, has damaged critical infrastructure.

“About 165 million tonnes of freight move annually by rail, while market demand reaches nearly 280 million tonnes,” said Barbara Creecy. She said the government aims to increase volumes to 250 million tonnes per year by 2030.

Data from the Passenger Rail Agency of South Africa shows that the network transported more than 100 million passengers last year. The agency reported a recovery trend but confirmed that volumes remain far below the 600 million target required to restore historical performance.

The rail sector’s decline has also weakened economic performance. Logistics constraints have disrupted mining and agricultural value chains, reducing export revenues and affecting employment.

At the same time, increased reliance on road transport has intensified congestion and raised safety risks across the road network.

The master plan outlines structural reforms aimed at reversing the trend. The government plans to concentrate freight operations on high-density corridors and progressively migrate strategic routes to standard gauge.

The government also plans to expand private sector participation to unlock investment and improve operational efficiency.

In addition, authorities plan to modernize passenger services and rationalize the network. The plan includes closing unprofitable lines and developing new services aligned with evolving market demand.

However, the implementation of the reform program faces multiple challenges. The government must secure sufficient funding to support the investment plan.

Authorities must also protect infrastructure against vandalism and establish a regulatory framework that attracts private investors.

In parallel, the reform could create social tensions. Line closures and sector restructuring could affect jobs and mobility in a context of high public expectations.

This article was initially published in French by Henoc Dossa

Adapted in English by Ange J.A de Berry Quenum