Transnet requests $2.2 billion to modernize South African infrastructure

Transnet, South Africa’s state-owned freight and logistics company, has requested 35 billion rand (approximately $2.2 billion) from the National Treasury to modernize its rail and port infrastructure. Transport Minister Barbara Creecy announced the request on August 13, noting that the funding would be channeled through the Budget Facility for Infrastructure (BFI) to support projects through 2030.

The investment aims to resolve logistics bottlenecks that have hindered mining and industrial exports. A key component of the plan involves upgrading railway lines to accommodate 11 private operators that were awarded train paths on the national network in May. The integration of these private entities is expected to add 24 million tons of freight capacity within roughly 18 months.

Through these upgrades, the government intends to increase annual rail transport volumes from 180 million tons to a target of 250 million tons by 2030. Beyond rail, the modernization efforts include the implementation of a digital port community system and the development of a private-sector operated floating dock at the Port of Cape Town.