South Africa’s freight-rail sector is entering a new phase of private-sector resurgence after Traxtion announced a R3.4 billion (over US $200 million) investment to expand rail-freight capacity.

The investment includes acquisition of 46 diesel-electric locomotives from New Zealand’s KiwiRail and hundreds of new wagons, making it the largest private freight-rail commitment in South Africa’s history in terms of both value and fleet size.

Under the plan, the locomotives will be modernised by the global rail-equipment provider Wabtec and deployed through 2026–2028. The programme includes at least 60% local content, and is expected to create over 660 direct jobs during build-out and deployment.

For South Africa, this investment signals growing confidence in ongoing rail reforms aimed at unlocking logistics bottlenecks, easing pressure on roads, boosting freight capacity, and lowering transport costs for mining, agriculture, manufacturing, and exports. Experts say the extra rail capacity could cover roughly 5% of the national freight shortfall.

Officials hope the move will encourage further private sector participation, spur infrastructure upgrades, and mark a turning point for the country’s freight and logistics sector