South Africa’s largest private freight rail investment

Traxtion has announced the conclusion of a R3.4 billion (approx. US$180mn) rolling stock investment programme aimed at expanding freight capacity and supporting South Africa’s rail reform agenda

The programme, comprising R1.8 billion (approx. US$95.4mn) in locomotives and R1.6 billion (approx. US$84.8mn) in wagons, is the largest private freight rail investment in the country’s history by fleet size and value. It targets a minimum 60% local content and is expected to create 662 direct jobs during build and deployment, addressing about 5% of the national freight rail capacity shortfall.

The investment includes 46 diesel-electric locomotives from KiwiRail in New Zealand, comprising 42 U26C partly modernised units and four fully modernised C30-8MMI locomotives. Traxtion, in collaboration with Wabtec, will upgrade the U26C fleet to C30MEI specification with fuel-efficient 7FDL-EFI engines and advanced Brightstar control systems, enhancing reliability and tractive performance. All upgrades will be conducted at Traxtion’s Rail Services Hub in Rosslyn, supporting local manufacturing and supplier participation.

Shipments of the locomotives will occur in four tranches from April 2026 to August 2027, with each batch undergoing a four-month modernisation cycle including engine and control system upgrades, six-yearly services, and repainting. The first units are scheduled to enter South African mainline operations in Q3 2026.

James Holley, CEO of Traxtion, commented, “Private capital flows when Government policies create confidence in the private sector to invest. This investment is our vote of confidence in South African rail and in the reform momentum we are seeing. Every additional locomotive we put to work lowers logistics costs, protects the road network, improves our environmental footprint, and creates jobs in the upstream economy.”

The programme maximises local industrial value-add through assembly, supplier development, and skills transfer. All wagons will be domestically manufactured by trusted local suppliers. Benefits include high-capacity locomotives for bulk and container flows, job creation, supplier ecosystem growth, and enhanced training and safety through Traxtion’s Government-accredited Rail Training Centre at Rosslyn.

Aligned with South Africa’s rail reform framework, Traxtion expects further investment once the Rail Access Agreement under the Network Statement is fully bankable with service-level guarantees and legal protections.

Sipho Makhubela, CEO of Harith, added, “This investment marks a defining milestone for private sector participation in South Africa’s rail reform journey. As a long-term investor in Traxtion, Harith is confident in rail’s potential to unlock immense economic value. This programme sets a new benchmark for how private investment, aligned with policy certainty and local value creation, can deliver transformative outcomes for South Africa and the continent.”

Traxtion operates across ten African countries with more than 50 locomotives on long-term contracts. On corridors like TAZARA and in the Democratic Republic of Congo, third-party access regimes have significantly increased rail volumes.

Beyond deployment, the R3.4 billion (approx. US$180 million) programme is expected to generate multiplier effects across mining, agriculture, manufacturing, and export logistics by shifting volumes from road to rail. Holley concluded, “Rail is a network industry. When trains move efficiently, the whole economy moves. This programme is about getting South Africa’s freight system working for growth and proving that private-sector investment, aligned with reform, can deliver fast, measurable gains for the country and the region.”