• South Africa’s Traxtion to invest 3.4 billion rand to expand rail fleet

• Deal includes 46 KiwiRail locomotives and 920 new wagons for modernization

• Investment aligns with rail reforms opening Transnet network to private operators

South African private rail operator Traxtion will invest 3.4 billion rand (about $200 million) to upgrade and expand its locomotive and wagon fleet, the company said on Wednesday.

The plan includes the purchase of 46 used diesel-electric locomotives from New Zealand’s KiwiRail for 1.8 billion rand. The units consist of 42 partially refurbished U26C locomotives and four fully refurbished 2.5 MW C30-8MMI models.

Working with Wabtec, Traxtion will carry out major overhauls of the U26Cs, replacing their engines with more fuel-efficient models and installing advanced Brightstar control systems to improve reliability and performance. The investment also covers the acquisition of about 920 wagons for an additional 1.6 billion rand.

The move comes as South Africa continues reforms to open parts of the national rail network to private operators. In August, Transport Minister Barbara Creecy said 11 private companies had been selected to run several sections of the network, long dominated by state-owned Transnet, which has struggled with operational and management problems for more than a decade.

The government hopes the restructuring will lift rail freight volumes to 250 million tonnes by 2030, up from under 160 million tonnes today. Nearly 90 million tonnes of that growth is expected to come from private operators.

According to Traxtion’s schedule, the locomotives will be shipped to South Africa in four batches between April 2026 and August 2027. Each batch of 10 to 12 units will undergo a four-month overhaul process. The first upgraded locomotives are expected to enter service in the third quarter of 2027.

Henoc Dossa