South Africa will need approximately R2 trillion in public and private investment over the next 30 years to implement plans to establish rail as the backbone of the country's logistics and transportation system.
This investment is expected to benefit the economy due to large infrastructure spending, with economic studies showing that for every R1 million invested, the economy could grow by approximately R4.3 million.
“This type of investment will also support key industries such as steel, cement, logistics and engineering. This will create jobs and help increase people's incomes,” Transport Minister Barbara Creasy said in Kempton Park in Gauteng on Thursday.
According to the draft National Rail Master Plan (NRMP), the goal is to build an integrated system that provides lower transportation costs, faster and safer passenger travel, reliable freight traffic and broader economic opportunities.
The plan also marks a shift towards more inclusive, consultative planning, expanding beyond traditional commercial and state-owned enterprise considerations to include a broader range of stakeholder perspectives from the outset.
Therefore, the Minister launched a centralized, web-based platform to host the draft plan and submit comments on the plan.
“This platform includes GIS mapping, interactive tools and a user manual. I urge all stakeholders here today and across the country to actively engage with the draft masterplan.
“Use digital platforms to review the draft plan, provide input and help prioritize investments that provide the most value to our people and our economy,” the minister said.
South Africa's economy is losing potential income due to its inability to meet the increasing demand for the transport of export goods.
Currently, approximately 165 million tonnes of freight is transported annually on the rail network, while research shows that market demand is closer to 280 million tonnes.
“The unintended consequences of this poor performance of our rail network include loss of foreign exchange earnings and job losses when mining and agricultural products cannot be exported affordably and in a timely manner,” the minister said.
Furthermore, congestion, road conditions and safety concerns are increasing transportation costs and weakening overall efficiency.
“In the commuter sector, high transport costs reduce take home wages and force commuters to spend several hours a day on congested highways.
“An effective commuter rail system will reduce household costs, save time, reduce accidents, and improve income and access to services for low-income communities,” he said.
The NRMP is a long-term strategic framework intended to guide the revival, expansion and modernization of South Africa's rail system.
The Master Plan translates the National Railway Policy, approved by the Cabinet in 2022, into a practical, phased investment and implementation program for both freight and passenger rail over the coming decades.
It seeks to build an affordable and competitive rail system by integrating passenger, freight and high-speed rail while promoting private sector participation.
The Minister has urged all stakeholders across the country to be actively involved in the draft of the masterplan.
“Use digital platforms to review the draft plan, provide input, and help prioritize investments that provide the most value to our people and our economy.
“We will set out to engage with all provinces and freight, passenger, passenger groups and labor structures to ensure a truly inclusive process,” the minister said.
All dates and locations of masterplan consultation days in the different provinces will be published on the website.
Public consultation will end in July 2026, after which the NRMP will be presented to the Cabinet for consideration and approval.
“Going forward, a dedicated rail planning component will maintain an updated databank on passenger and freight flows, network capacity, asset condition and rolling stock fleet. This will allow the masterplan to be updated annually and reviewed every five years.
“If we are to create an integrated logistics system where rail delivers lower transportation costs, faster and safer travel for people, reliable freight movement and vibrant economic opportunities for all communities, we need your partnership.”“The minister said. –sanews.gov.za