Govt launches Rail Master Plan to revive sector, boost economic growth
Updated April 23, 2026, 4:37 p.m. | By Mmangaliso Khumalo
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Government has, on Thursday, unveiled a sweeping draft National Rail Master Plan aimed at revitalising the country’s struggling rail network, unlocking economic growth, and repositioning rail as the backbone of the national transport and logistics system.
X: Department of Transport
The plan, approved by Cabinet for public consultation on 1 April, outlines a long-term, phased framework to integrate passenger and freight rail, expand and modernise infrastructure, and encourage greater private-sector participation in rail operations.
Addressing delegates, Transport Minister Barbara Creecy said the initiative represents a decisive shift towards building a more efficient, competitive, and sustainable transport system.
"This draft national rail master plan was approved for public consultation by cabinet on the 1st of April, and it aims to position rail as the backbone of South Africa's logistics and transport ecosystem. And so it outlines a sustainable strategic framework for rail network planning. It includes both passenger and freight rail."
ADDRESSING UNDERPERFORMANCE AND ECONOMIC LOSSES
The government said the master plan is designed to tackle longstanding inefficiencies that have hampered the rail sector and constrained economic growth.
For years, South Africa’s rail system—largely operated by Transnet—has struggled with declining performance, infrastructure challenges, and underinvestment, leading to a significant shift of freight onto roads.
Creecy highlighted the gap between current rail capacity and market demand.
"Currently, approximately 165 million tons of freight are moved on the transport net, on Transnet's rail network each year. Research indicates that market appetite for freight rail is closer to about 280 million tons. The unintended consequence of this underperformance by our rail network includes loss of foreign exchange earnings and job losses, when mining and agricultural products cannot be affordably and timeously exported."
The master plan seeks to rebalance freight transport from road to rail, easing congestion, reducing road damage, and improving overall logistics efficiency.
MASSIVE INVESTMENT AND ECONOMIC UPSIDE
It was expected that the full implementation of the plan would require nearly R2 trillion in combined public and private investment over the next 30 years.
Creecy argued that the long-term economic returns will far outweigh the costs, with infrastructure spending expected to stimulate multiple sectors.
"This kind of investment will positively impact industries such as steel, cement, logistics, and engineering. As well as create jobs and boost household income."
Beyond freight, the master plan places significant emphasis on rebuilding commuter rail, which is seen as critical to reducing the cost of living and improving access to jobs and services.
Creecy acknowledged progress in restoring commuter services through the Passenger Rail Agency of South Africa, but said major gaps remain.
"We've succeeded in operationalizing 37 out of the 40 priority lines, and this year we hope to transport somewhere in the region of about 116 million passenger journeys, but our target over the five-year term is 600 million passenger journeys. And this means that we still have a way to go in terms of infrastructure investment and also, more importantly, the development of signaling in the PRASA network."
She said a functional commuter rail system could significantly improve the quality of life for millions of South Africans.
"An effective commuter rail system would lower household costs, save time, reduce road accidents, and improve accessibility to income and services for low-income communities."
PRASA SIGNALS RECOVERY AND FUTURE AMBITION
The Passenger Rail Agency of South Africa (PRASA) welcomed the master plan, describing it as a long-overdue roadmap for rebuilding and modernising passenger rail services.
PRASA CEO Hishaam Emeran said the plan marked a turning point for a sector that had been operating without a coherent long-term vision.
"The development of a National Rail Master Plan is long overdue. For decades, rail in South Africa has operated without a long-term blueprint. Today's launch changes the status quo."
He added that the plan translates policy into action.
"The National Rail Master Plan translates the national rail policy of 2022 into a practical phased investment and implementation framework for both passenger and freight rail, spanning the coming decades."
Emeran said PRASA had made notable progress in rebuilding operations after years of decline.
"When the organization was at its lowest point, our annual performance had collapsed to below 20%. Through decisive leadership, targeted investment, and the unwavering support of government, we have clawed our way back.
"Today, we are operational on more than 35 out of our 40 priority rail corridors, and our annual performance measure is consistently above 80%."
He said ridership is also recovering strongly.
"We're happy to report it's still unaudited, but we've broken the 100 million passenger journey trips for the year, representing an increase of over 30% from the previous year."
REFORMING THE RAIL SYSTEM
The master plan also introduces structural reforms aimed at improving efficiency and coordination across the rail sector.
Michelle Phillips, CEO of Transnet, said the plan reflects a shift away from fragmented decision-making towards a more coordinated national approach.
"For quite some time now, rail has underperformed, not because it lacks inherent competitiveness, but because the system surrounding it has been fragmented with investment decisions not always being timely or aligned with market demand."
She said the plan signals a broader change in thinking.
"This plan signals a deliberate and necessary shift in national thinking, from fragmented responses to systemic reform and from short-term crisis management to long-term coordinated planning and execution."
The reforms include separating rail infrastructure management from train operations and opening the network to third-party operators, while retaining state ownership of key assets.
Both government and industry stakeholders have emphasised the importance of private-sector involvement in revitalising the rail network.
Emeran said PRASA supports structured private-sector participation, particularly in areas such as infrastructure upgrades, modern ticketing systems, and digital technologies.
"PRASA supports the master plan vision of structured private sector involvement. And this has already commenced, led by the Department of Transport.
He also stressed the need for a fully integrated transport system.
"What we need is an integrated transport system, with rail as the backbone, with other key modes playing their role as well."
PUBLIC PARTICIPATION CRUCIAL
Government urged stakeholders, industry players, and the public to actively participate in the consultation process, which would run until July 2026.
Creecy said meaningful engagement would be key to ensuring the plan delivers tangible results.
"Public consultation is not a formality. We do need your participation if we are to create an integrated logistical system where rail delivers lower transport costs, faster and safer journeys for people, reliable freight movement, and the vibrant economic opportunities we want for all communities across our country."
The final National Rail Master Plan will be revised based on public input before being resubmitted to Cabinet for approval, setting the stage for what the government hopes will be a new era for South Africa’s rail sector.
