A train carrying freight also carries confidence. Grindrod’s successful train test under South Africa’s new open-access rail framework offers tangible reason to believe in what this country can achieve when government and business work towards a common purpose.
SAAFF congratulates Grindrod, Transnet Rail Infrastructure Manager (Trim), the Department of Transport and the teams whose work made this achievement possible. The development deserves recognition for the operational progress it represents and its expected positive impact on costs, capacity and cargo flows. It also sets an example of what South Africans can achieve by building solutions and the economy together: We need more of this!
The test, completed on the North-East Corridor on 2 November with 2 991 tonnes of freight, makes Grindrod the first private train operating company to run a train on the national freight rail network under the new framework. It represents an important development in opening the network to private operators and offers the prospect of a more efficient logistics system.
Commercial services planned for 2027 are expected to move approximately 288 000 tonnes in the first year. The SAAFF member community recognises these as distinct stages: a successful test establishes readiness, while consistent commercial delivery will generate enduring value.
From the industry's point of view, three connected impacts give this development wider significance. Firstly, the gap between the capacity our rail network was designed to carry and the lower capacity it has demonstrated to date must progressively narrow and, in due course, close.
Rail performance relies on locomotives, wagons, signalling, maintenance, safe and secure operations, and dependable terminals working together. New operators can add equipment, investment and expertise to help optimise the network's design capacity. Rail access agreements must deliver reliable services that move freight on time and in full. Better use of existing infrastructure will strengthen the case for further investment, support sustainability and ultimately contribute to economic growth.
The SAAFF Cargo Movement Update of 25 October cites figures from the State of Logistics™ (SoL), showing an increase in rail freight volumes from 149.5 million tonnes in 2022/2023 to 167.9 million tonnes in 2025/2026, a gain of 18.4 million tonnes or 12.3%. Sustaining that progress requires consistently reliable general freight services and the elimination or reduction of avoidable costs across the supply chain.
According to SoL, the estimated economic impact of rail underperformance in 2025 was R180.8bn, comprising R92.4bn in transport inefficiencies and R88.4bn in foregone bulk mineral exports. The scale of these losses strengthens the economic case for continuing rail reform and provides context for Grindrod's entry, demonstrating why the next phase matters. Real recovery is sustainable only through volume growth and greater efficiencies, broadening participation and ensuring that the gains are relevant and beneficial to more cargo owners.
The second opportunity is to restore rail to its rightful place within a synchromodal logistics network, where road, rail, ports and inland terminals operate in coordination to meet freight demand at the lowest practical total economic cost. The choice of transport mode should reflect the load, the speed and reliability required, and the distance it must travel.
When reliable, rail offers a cost-effective option for large, predictable loads over longer distances. Road provides reach and flexibility, including collection and final delivery, while ports and terminals link freight to regional and international markets. A dependable end-to-end journey requires a competitive rail service, efficient loading, predictable connections, timely border processes, adequate terminal capacity, and safety and security throughout.
Our customers plan production, inventories and contractual commitments around the performance of the whole chain. For freight forwarders, this development offers more transport choices and better ways to tailor services to customers' needs and market expectations.
Businesses need evidence, consultation and practical engagement across the logistics system. The credo of “shared infrastructure equals shared responsibility” must underpin progress and sustainability at every step, not only during a crisis. DGT's continuing vessel backlog demonstrates how failures in one part of the logistics network spread delays and costs throughout the supply chain.
SAAFF supports progress through evidence, consultation and sustained practical engagement across the logistics system. Our members and their customers know that delays anywhere in the chain quickly affect costs and delivery commitments, locally and internationally. A coordinated system that operates efficiently and as planned, however, creates cost advantages for every participant.
