Transport infrastructure has the potential to translate into economic opportunity for South Africa and the country is working to accelerate infrastructure investment.

This was noted by speakers during a media roundtable hosted by engineering consulting firm GIBB, the Academy of Science of South Africa (ASSAf) and the South African Academy of Engineering (SAAE) earlier this week.

The speakers unpacked how safer mobility, better connectivity and stronger transport infrastructure could support economic growth, providing insights on South Africa’s transport challenges and opportunities.

State-owned Transnet chief strategy and planning officer Dr Andrew Shaw discussed whether there was an investment case for expanding existing infrastructure to drive economic growth.

He described freight infrastructure as the backbone of South Africa’s economy, noting that when it underperformed, the whole economy suffered.

Shaw said a decade of underinvestment and operational decline had cost the economy, noting that the recovery was under way, but incomplete.

He noted that rail volumes started to decline from about 226.3-million tonnes in 2017/18 to about 149.5-million tonnes in 2022/23 as the quality of the assets, particularly fixed infrastructure and some of the rolling stock, started to decline.

Thereafter, he explained, Transnet had put forward a reform model to help drive volumes on the rail network higher.

Shaw highlighted that 18.4-million tonnes of rail volumes have been recovered since 2022/23, reaching 167.9-million tonnes in 2025/26. He said Transnet aimed to achieve between 176-million and 180-million tonnes.

“[There are] still challenges and I don't want to try and defend all the challenges that still remain. But overall, the case for an improvement is there,” he said.

Shaw highlighted Transnet’s Reinvent for Growth strategy that focussed on tactical recovery by restoring reliability, transforming the business through reforms and growing the business through expanding capacity.

In terms of growing the business, he explained that a key element was expanding through a private sector participation (PSP) process wherein government and the private sector jointly collaborated around shared equity investments to fast-track growth and re-establish some of the main corridors.

He pointed out that Transnet aimed to develop commercially robust and bankable PSP transaction structures; introduce PSPs across rail, ports and pipelines; mobilise private capital and expertise; and expand capacity, volumes and market reach.

Shaw noted that structural reform was opening the freight system to competition, new operators and private investment, highlighting various reforms achieved so far, such as the award of the Richards Bay liquefied natural gas terminal concession.

He noted that Transnet was also in the process of engaging with government regarding the corporatisation of the Transnet Rail Infrastructure Manager (TRIM) and the Transnet National Ports Authority (TNPA).

Additionally, he noted that the rolling stock leasing company, or Leaseco, had undertaken a request for qualification process, with two interested parties having made the shortlist. He explained that Transnet hoped to close this in terms of a preferred bidder by the end of February.

Shaw said this could create a rolling stock market for new operators to make use of rolling stock that previously was not effectively used, going forward.

Looking at the benefits of PSPs, Shaw highlighted that PSPs could contribute to greater operational efficiency; capital investment; customer-centricity and commercial agility; risk sharing; market confidence and governance; and strategic alignment.

He added that PSPs could also create volume growth which, in turn, could enable direct economic benefits.

In his presentation, he explained that Transnet aimed to complete the TRIM and TNPA corporatisation, then convert the eight ongoing PSP initiatives into bankable, competitively procured transactions.

Shaw concluded his presentation by stating that Transnet was focusing on reliability; completing reforms; mobilising investment; integrating the system; and aligning government, Transnet, industry and the engineering community on funding, regulation and sequencing.