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In May 2026, the Transnet Rail Infrastructure Manager (“TRIM”) announced that it had successfully concluded Rail Access Agreements (“RAAs”) with all 11 Train Operating Companies (“TOCs”) that were allocated slots, transitioning from negotiation to binding commitment. What was once only a policy blueprint is now a functioning framework and the legal architecture underpinning South Africa’s reformed rail system is rapidly taking shape.
From slot allocation to binding agreements
The conclusion of the RAAs with all 11 TOCs represents the critical transition from regulatory approval to contractual obligation. TRIM's Chief Executive, Moshe Motlohi, characterised the milestone as signalling "the creation of a functional and competitive rail marketplace", noting that the sector has moved "from policy design to practical implementation, enabling real private sector participation and investment in rail". The new operators (ARC South Africa, The Railway Corporation, TLD Marine, MENAR, Sharp Logistics, Barberry, Grindrod, Minrail, IRACEMA, Motheo Logistics, and Interlinks) cover vital sectors including coal, manganese, containers, fuel, and general freight. These agreements increase the number of active operators on the national rail network from one to twelve, spanning five strategic corridors. Collectively, these new entrants are projected to add some 24 million tonnes of annual freight capacity in the near term, a figure that could increase to as much as 52 million tonnes within the next five years, advancing the government's broader ambition of increasing total rail freight to 250 million tonnes by 2030.
While the RAAs provide the contractual backbone as covered in our previous article,, the broader legislative framework required to sustain a competitive, multi-operator rail sector is still being assembled. Several concurrent legal and regulatory workstreams are converging to create the institutional architecture necessary to govern this new market.
The National Rail Bill
The National Rail Bill (the “Bill”), which is being finalised for submission to Cabinet by September 2026, is the centrepiece of the legislative reform agenda. The Bill aims to create an enabling legislative framework for a competitive rail sector. Until the Bill is enacted, the sector operates within the existing National Rail Policy, supplemented by the contractual arrangements concluded between TRIM and the TOCs. The passage of the Bill will be pivotal in converting policy positions into statutory obligations and providing the legal certainty that operators, funders, and investors require to invest in rolling stock with greater confidence.
The National Rail Master Plan
Cabinet approved the publication of the National Rail Master Plan (“NRMP”) for public comment on 1 April 2026. Building on the foundations laid by the White Paper on National Rail Policy, the NRMP sets out a long-term vision for overhauling and expanding the country's rail infrastructure. Its stated objective is to foster an affordable and competitive rail system that actively draws in private sector investment and participation. Stakeholders have until 22 June 2026 to submit comments on the NRMP, presenting a valuable window to influence the regulatory and policy direction of the sector going forward.
The Transport Economic Regulator
The Transport Economic Regulator (“TER”) entered its initial operations on 1 April 2026, with the Board tasked to oversee and establish the institution's governance framework, capacity needs, and design of regulatory frameworks needed to fulfil its mandate. The Board is also tasked to oversee the transition of existing regulators into TER. The TER is expected to be fully operational from the beginning of the 2027/28 financial year. Minister Barbara Creecy confirmed in her Budget Vote speech that the TER is being established "so that going forward port and rail fees are independently determined to ensure a level playing field for all operators". By removing tariff-setting from the infrastructure manager's hands and placing it with an independent body, the TER is better positioned to guard against discriminatory pricing and ensure that all operators compete on a level footing. For TOCs and their funders, this institutional safeguard is a reassuring development, offering the kind of regulatory stability, transparency, and formal avenues of recourse that are critical to building investor confidence and securing the long-term capital commitments the sector so urgently needs.
Network Statement Version 4
Following the Interim Rail Economic Regulatory Capacity's review of the current Network Statement, TRIM is now at an advanced stage of finalising Network Statement Version 4, the key regulatory document governing access to the rail network, including capacity allocation, tariffs, and operational requirements. Notably, Version 4 has been shaped by feedback from both operators and financial institutions, a collaborative approach that has enhanced the bankability of rail projects and signals TRIM's recognition that the access terms must be robust enough to support the financing structures that TOCs will need.
Institutional Restructuring: TRIM as a Subsidiary
A key structural reform underpinning the entire access framework is the separation of rail infrastructure management from rail operations within Transnet. During the quarter ended March 2026, Transnet submitted its Public Finance Management Act pre-notification application for the establishment of TRIM as a subsidiary.
The success of the multi-operator model depends in large measure on whether the infrastructure manager can credibly demonstrate independence from incumbent operators, a principle that is well established in comparable rail reforms internationally.
Bankability and Investor Confidence
President Ramaphosa, speaking at the South32 Hillside Aluminium Anniversary on 7 May 2026, affirmed that "South Africa is transitioning to the early stages of a multi-operator rail system, with 11 private train operating companies having been granted access to freight rail lines" and noted that "investment, reform and delivery are now firmly underway in rail and port infrastructure".
Concrete investment commitments are also materialising. South32 pledged ZAR3.9 billion at the South Africa Investment Conference to upgrade rail infrastructure in KwaZulu-Natal and the Northern Cape. Meanwhile, the Durban Container Terminal Pier 2 Concession has reached financial close, establishing what Minister Creecy described as "a bankable model for future public-private sector participation".
Government is also backing the reform drive with significant public capital. Some ZAR16.8 billion has already been approved and is being deployed through the Budget Facility for Infrastructure across the coal and iron ore rail lines and port infrastructure, while applications for an additional ZAR23.6 billion are currently being prepared.
Conclusion
The legal architecture for South Africa's multi-operator rail system is taking shape in real-time. The conclusion of RAAs with all 11 TOCs, the operationalisation of the TER, the imminent Bill, and the corporatisation of TRIM as a subsidiary together represent the construction of a comprehensive legal ecosystem for South Africa's rail sector. A number of TOCs aim to have trains running before the close of 2026, with the balance expected to come online progressively through 2027.
The coming months will test whether the contractual frameworks, statutory instruments, and institutional arrangements now taking shape can deliver the certainty, enforceability and fairness that operators, funders, and the broader economy demand. For stakeholders in this space, the reform train is moving full steam ahead, and the stakes have never been higher.
Our banking and finance team has ongoing experience in private-sector rail transactions and maintains an active focus on legislative and regulatory developments affecting the sector. Get in touch with the authors below should you have any questions or want to learn more.
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