The IMM Graduate School Welcomes Key Freight Rail Reform to Strengthen South Africa’s Supply Chains
South Africa’s freight rail system is entering a transformative era.
In a landmark announcement earlier this month, Transport Minister Barbara Creecy confirmed the provisional approval of 11 private train operating companies. The move opens access to South Africa’s freight rail network, long dominated by Transnet. Among the approved operators is global shipping leader Mediterranean Shipping Company (MSC), which will run on 41 routes nationwide.
This milestone marks a major step in South Africa’s freight rail reform. It has the potential to reshape logistics and supply chain management for businesses, consumers, and the wider economy.
As a leading specialist in supply chain management education, the IMM Graduate School applauds this development as a significant step forward. Strengthening South Africa’s supply chain sector is vital for driving economic growth across the continent.
It remains committed to its mission as a specialist supply chain education provider, equipping professionals with the skills and expertise to build on these advancements. In doing so, it supports the ongoing growth, efficiency, and resilience of the industry.
Driving Supply Chain Efficiency and Reducing Logistics Costs
The inclusion of private operators is projected to increase freight volumes from 160 million tons to 250 million tons by 2030.
By moving cargo from overburdened roads to rail, these reforms are expected to ease transport bottlenecks and cut logistics costs. They are also likely to improve delivery times for industries such as mining, agriculture, and manufacturing.
Dr Ernst van Biljon, Head Lecturer and MCom Programme Coordinator at the IMM Graduate School, says: “Private sector participation in freight rail can unlock the missing link in South Africa’s logistics system.
“If we can shift even 20-30% of heavy cargo back onto rail, exporters could cut lead times by days and slash transport costs by up to 40% on certain long-haul corridors. For time-sensitive industries like agriculture and automotive, that’s a competitive lifeline.”
This enhanced reliability and speed moves goods more efficiently and supports competitive supply chains in South Africa. This benefit reduces the cost of doing business and could influence consumer prices over time.
Reducing Road Congestion and Protecting Infrastructure
South Africa’s road network currently carries the bulk of freight, leading to high maintenance costs and increased road safety risks. Rail reform will help relieve this strain by transferring millions of tons of cargo from trucks to trains.
Dr van Biljon notes: “Right now, 80% of freight moves by road. This causes billions in road damage annually, congestion at our ports, and unpredictable delivery times. A stronger rail backbone will protect infrastructure, reduce truck congestion, and give logistics planners the predictability that domestic, regional and global supply chains demand. But rail reform alone won’t be enough.
“It must go hand in hand with port reform. Private concessions at container terminals in Durban and Cape Town have stalled for years, resulting in lost days for exporters. Rail reform must be matched by real investment and operational reforms at the ports to unlock full value.”
The shift to rail supports sustainable logistics solutions and a safer, more resilient transport ecosystem for South African businesses.
Stimulating Economic Growth and Building Skills
The reforms align with World Bank recommendations and South Africa’s National Development Plan. The plan emphasises private sector involvement to stimulate economic growth and infrastructure development.
Dr Ernst van Biljon adds: “We are already seeing the early signals of South Africa’s export potential. The citrus industry alone is expecting growth of around 5-6% this year. That growth depends on reliable, fast logistics, and it illustrates the wider opportunity if rail and port reforms succeed: faster turnaround times, lower logistics costs, and stronger value chains that can drive employment and competitiveness across the economy.
“This is ultimately about positioning South Africa as Africa’s primary logistics hub. With modern rail corridors feeding efficient ports, we can become the gateway for BRICS and African trade flows, but if we delay, competitors like Kenya, Egypt and Djibouti will take that role.”
The IMM Graduate School provides practical, modern, and globally recognised education in supply chain management. Through this, it equips students to support the transformation and meet the needs of a rapidly evolving logistics sector.
IMM Graduate School: Developing Supply Chain Talent for South Africa and Africa
With over 75 years of service to the marketing industry and more than two decades specialising in supply chain education, the IMM Graduate School maintains a vested interest in developments like these. The school recognises their potential to shape the future of logistics and supply chain management in South Africa.
Dr van Biljon adds: “Infrastructure alone is not enough. Reforms of this scale demand logistics and supply chain professionals who can manage complex, integrated networks and use data-driven decision-making to unlock performance.
“The IMM Graduate School’s programmes are designed specifically to develop this new generation of logistics leaders – people who can translate policy change into practical gains for exporters, industry and the broader economy.”
IMM Graduate School offers industry-aligned supply chain programmes that nurture future professionals. These graduates are equipped to drive efficiency, innovation, and economic growth in South Africa’s logistics sector.
Looking Ahead: Supply Chain Reform as a Catalyst for Economic Resilience
Rail reform is an infrastructure upgrade and a catalyst for long-term economic growth. This development has the potential to transform South Africa’s trade and logistics landscape. It could improve supply chain efficiency, ease road congestion, and foster more competitive freight operations.
The IMM Graduate School remains committed to advancing supply chain management education as a key driver of economic growth in South Africa and across the African continent.
Media Requests
Dr Ernst van Biljon, Head Lecturer and MCom Programme Coordinator at the IMM Graduate School, is a recognised supply chain and logistics expert who regularly provides in-depth analysis on South African, African, and global supply chain developments. He is available for expert comment on this rail reform milestone and broader industry trends.
For media requests, please contact lunice@ljcommunications.co.za
Further Reading
IOL: Global shipping company MSC secures approval to run trains on SA’s rail network
Engineering News: First 11 train operators selected for 41 routes
Daily Maverick: South Africa opens its rails to competition