Industry association hails Traxtion’s R3.4bn rail investment as major boost to SA's freight reform

THE African Rail Industry Association (ARIA) has hailed the R3.4 billion investment in locomotive production by Traxtion as a move that will enable competitive and open-access rail network, and reinforce Transnet’s capacity to support national targets.

- YOGASHEN PILLAY

THE African Rail Industry Association said it offers tangible relief for key economic corridors and supports the broader push to rebuild the country's logistics system.

(SUPPLIED)

Traxtion on Tuesday announced that the investment, part of a broader R5bn private-sector commitment made at the launch of the National Rail Policy in 2022, will help expand freight capacity and accelerate sector reforms.

The programme includes R1.8bn for locomotives and R1.6bn for wagons, with a minimum 60% local content requirement. Construction and deployment are expected to create 662 direct jobs.

ARIA on Wednesday said the investment represents the largest private freight rail commitment in South Africa's history and provides “definitive validation” of government's reform efforts.

The association said it offers tangible relief for key economic corridors and supports the broader push to rebuild the country’s logistics system.

ARIA CEO Mesela Nhlapo said this investment is not about competition with Transnet; rather, it represents a collaborative effort aimed at making South Africa Inc. globally competitive.

“As Transport Minister Barbara Creecy emphasised, private sector investment is critical to enhancing capacity and efficiency.