The 11 private train operating companies (TOCs), which were last year allocated slots on South Africa's mainline rail network, have now officially concluded rail access agreements with the Transnet Rail Infrastructure Manager (TRIM) and are gearing up to begin operations.

At a ceremony in Sandton on May 13, TRIM confirmed that the TOCs were expected to inject an additional 24-million tonnes of freight capacity across the coal, manganese, container, fuel, and general freight segments.

The initial TOCs to have received allocations were also confirmed as being ARC South Africa, Barberry, Grindrod, Interlinks, IRACEMA, Menar, Minrail, Motheo Logistics, Sharp Logistics, The Railway Corporation and TLD Marine, which includes MSC as a participant.

Some TOCs were targeting to begin operations before the end of 2026, and TRIM said the majority were expected to be operational during the course of 2027.

Transnet CEO Michelle Phillips described the conclusion of the rail access agreements as a "significant milestone" and said it was also evidence that Transnet was implementing the policy reform of having an open-access rail system.

The network has hitherto been monopolised by Transnet Freight Rail, and the entry of private operators has been facilitated by the vertical separation of rail operations from infrastructure and the launch of TRIM, which marked its first anniversary in April.

TRIM subsequently published Network Statement Version 3, which laid the basis for the allocation of slots to TOCs, including the rail access fees.

TRIM CEO Moshe Motlohi reiterated that the TOCs would enter at their own risk a network that had been neglected, but also outlined various initiatives being undertaken to improve the state of the network and signalling.

Transnet was also increasingly accessing the National Treasury's Budget Facility for Infrastructure to fund capital projects on the rail system, with Transport Minister Barbara Creecy having stated that R16.8-billion in public investment had already been approved for the coal, iron-ore and port networks and that further applications worth R23.6-billion were being prepared.

Network Statement Version 4, which includes refinements to the slot allocation system, was currently being finalised and would be released by the Department of Transport in the coming days in a bid to pave the way for the allocation of yet more rail slots to private operators.

The statement will be updated either yearly or every two years in an effort to progressively open the network to TOCs in line with a goal of having private operators contribute to government's target of raising freight rail volumes to 250-million tons by 2030, from below 180-million tons currently.

"This milestone represents more than just slot allocation, it signals the creation of a functional and competitive rail marketplace," Motlohi said.

He also confirmed that TRIM had introduced an 'Ad Hoc Slot' application platform to allocate additional rail capacity outside the annual cycle.

Describing the mechanism as "innovative and rules-based", Motlohi reported that the ad hoc process had already unlocked new opportunities, including a proposed short-haul service between Cato Ridge and Durban aimed at reducing road congestion in the port precinct.

He said the service is targeted to commence operations in May 2026.

Transnet also provided an update on its initiative to establish a rolling stock leasing company, which would enable private operators to lease the locomotives and wagons needed to operate the route instead of making large upfront capital investments.

The so-called LeaseCo would be set up as a public-private partnership and Transnet confirmed that a request for proposals would be released imminently to bidders that had been identified during a prequalification process.

However, Transnet chief business development officer Yolisa Kani said that, owing to market demand, the State-owned company had already allocated assets to the entity and had conclu...