R120 billion lifeline for South Africa’s transport industry

The South African government has committed to an investment of R500 billion in the country’s crumbling infrastructure over the next three years, with R120 billion ring-fenced for the transport sector.

This support will include private and public rail rehabilitation, port efficiency upgrades and road network maintenance.

Deputy President Paul Mashatile reiterated these commitments during one of his responses to the National Council of Provinces (NCOP).

“We are currently implementing rapid response interventions to address service delivery challenges and troubleshoot disruptions identified in service delivery hotspots,” he noted.

Mashatile added that the government is committed to restoring the performance of critical economic infrastructure, including rails.

“Government has already committed resources towards restoring rail and logistics capability. The Minister of Finance announced an allocation of R21.9 billion to the budget facility for infrastructure,” he said.

“Government is also capacitating Prasa (the Passenger Rail Agency of South Africa) to implement its corridor recovery programme and modernise rail service infrastructure.”

Touching on Prasa’s 2025 performance, Mashatile noted that the agency had commissioned 35 of its 40 passenger corridors, achieving 77 million passenger journeys on long-distance rail services.

The Deputy President added that Prasa’s long-distance passenger division plans to reintroduce several mainline passenger services in the 2026/27 financial year.

These include routes from Johannesburg to Durban, Johannesburg to Queenstown, East London to Johannesburg, Cape Town to Johannesburg, Johannesburg to Musina, and Cape Town to Queenstown. 

In the meantime, Mashatile confirmed that Transnet’s rail infrastructure manager, alongside the Department of Transport and its partners, is prioritising the use of previously underutilised rails.

This key rail infrastructure, and its associated assets, have in some cases been inactive for long periods or vandalised.

“This work includes the revival of critical rail services that support agriculture, mining, manufacturing hubs and rural trading towns that rely heavily on rail connectivity,” Mashatile added.

Ongoing investment and rehabilitation

The Deputy President confirmed that through Operation Vulindlela, the government is also fast-tracking structural reforms to modernise the rail and logistics sector, including opening the rail network to third-party operators to enhance efficiency and competition.

He noted that private investment will aid government investment and policy reform to halt the decline of the South African rail system.

Mashatile added that the rehabilitation of passenger rail, brought about by policy reform, will improve mobility, safety and economic participation for citizens.

Eleven major freight companies are ready to come on board with the government’s plans, with the deputy president confirming their participation.

All parties are working to finalise the contracts so that they can begin work on essential passenger and freight rail corridors.

“We will now have more capacity brought by involvement with the private sector, dealing with the decline we have seen over the years,” said Mashatile.

“I am confident that with the plans the government has put in place, additional resources and private sector involvement, we will begin to correct this situation and ensure that rail infrastructure once again contributes to economic growth and job creation.”

Responding to additional questions regarding the government’s plans, Mashatile noted that the implementation of the National Rail Policy, introduced in 2022, has already begun.

The deputy president explained that the process has moved into its implementation phase, which includes the design and operational rollout across rail corridors.

“What is happening at the moment is a lot of completion of design and operational rollout in all corridors,” he noted.

“This infrastructure has been declining for some time, so that is what [the Department of] Transport is focusing on.”