South Africa Railway Market Report 2025 South Africa's Rail Revamp - Private Sector Opportunities Await

(MENAFN- GlobeNewsWire - Nasdaq) The report on railway transport and locomotive manufacturing outlines the revitalization efforts within South Africa's rail industry. Years of neglect and corruption have left the sector in disrepair, but recent regulatory reforms and leadership changes are yielding improvements. Key players like Transnet and the Passenger Rail Agency, alongside manufacturers such as Alstom and Traxtion, are steering recovery. Opportunities arise for private sector involvement in freight operations, network investment, and manufacturing expansion. While challenges such as controversial contracts, network deterioration, and theft persist, the outlook remains optimistic with substantial investment and private sector participation paving the path to recovery and expansion.

Dublin, Sept. 09, 2025 (GLOBE NEWSWIRE) -- The "Railway Transport and Manufacture of Locomotives and Rolling Stock in South Africa 2025" report has been added to ResearchAndMarkets's offering.

This report on railway transport and the manufacture of locomotives and rolling stock provides information on the size and state of the industry, including freight payload, passenger journeys, revenue, network condition, capacity, expansion, contracts, and prices. The report also includes comprehensive information on notable players, regulatory changes, and private sector involvement, as well as influencing factors such as operational safety and security.

There are profiles of 25 companies, including state-owned Transnet and the Passenger Rail Agency, which dominate the industry, as well as companies involved in manufacturing and services, such as Traxtion, Alstom, Gibela, Actom, and ABB.

Introduction

• Years of mismanagement and neglect have fundamentally damaged South Africa's rail freight and passenger transport industry.
• The situation has been worsened by some of the worst cases of corrupt deals of the state capture era.
• Regulatory reform and leadership changes in key state-owned rail enterprises have resulted in a gradual improvement in rail performance.
• Reforms are presenting the private sector with opportunities to provide freight operations and rail network infrastructural investment.
• Huge investment is required in rail infrastructure rehabilitation and expansion.
• Local manufacture of locomotives, rolling stock, components, and track fixtures and fittings has been hampered by corrupt and irregular contracts.
• There is a strong original equipment manufacture, and aftermarket refurbishment and re-engineering industry.

Trends

• Freight and passenger rail performance showing gradual recovery.
• Metrorail, Gautrain, and freight rail networks are all scheduled for expansion while a new fast train connecting Limpopo and Gauteng is being considered.
• Regulatory reform is accelerating, making room for private sector freight operators and ushering in a new era for freight rail.
• Separation of Transnet's rail business into an infrastructure manager, a rolling stock leasing company, and a freight rail operator.

Opportunities

• Localisation of manufacturing, component supply, and refurbishing engineering, and export of original equipment.
• Opening of the freight rail network to private sector operators.
• South Africa can become the rolling stock leasing, maintenance, and refurbishing hub for sub-Saharan Africa.
• There is substantial, unmet demand for freight rail services.

Challenges

• Controversial contracts signed in previous years continue to dog both Transnet and PRASA.
• The affordability of the Gautrain has been called into question.
• The rail network is in a poor state.
• Transnet, PRASA and the Gautrain are all still operating well below levels seen in 2014.
• Unchecked theft and vandalism of cables, signalling, and traction equipment is hampering train productivity and line availability.

Outlook

• While leadership changes at Transnet and regulatory reforms making room for private sector participation in rail operation have been positive and rapid, the challenges are monumental.
• The rail network requires substantial investment to function as designed, while it is plagued by unchecked equipment theft and vandalism.
• The private sector needs guarantees that the quality of the network won't be a risk to their investments.
• Rail as a mode of transport holds immense promise compared to road freight in terms of reducing emissions and logistics costs.
• Securing funding for the rehabilitation of the network is the next key step.

Key Topics Covered:

1. INTRODUCTION

2. DESCRIPTION OF THE INDUSTRY
2.1. Industry Value Chain
2.2. Geographic Position
2.3. Size of the Industry

3. LOCAL
3.1. State of the Industry
3.2. Key Trends
3.3. Key Issues
3.4. Notable Players
3.5. Trade
3.6. Corporate Actions
3.7. Regulations
3.8. Enterprise Development and Social Development

4. AFRICA

5. INTERNATIONAL

6. INFLUENCING FACTORS
6.1. Unforeseen Events
6.2. Economic Environment
6.3. Labour
6.4. Environmental Issues
6.5. Technology, R&D, Innovation
6.6. Government Support
6.7. Operational Safety and Security

7. COMPETITIVE ENVIRONMENT
7.1. Competition
7.2. Ownership Structure of the Industry
7.3. Barriers to Entry

8. INDUSTRY SUMMARY

9. OUTLOOK

10. INDUSTRY ASSOCIATIONS

COMPANY PROFILES

• ABB South Africa (Pty) Ltd
• Actom (Pty) Ltd
• Alstom Rolling Stock Sa (Pty) Ltd
• Alstom Ubunye (Pty) Ltd
• Bombela Concession Company (Pty) Ltd
• Bombela Maintenance (Pty) Ltd
• Bombela Operating Company (Pty) Ltd
• Denel Vehicle Systems (Pty) Ltd
• Galison Manufacturing (Pty) Ltd
• Gibela Rail Transport Consortium (Rf) (Pty) Ltd
• Global Railway Engineering (Pty) Ltd
• Ikusasa Rail (Pty) Ltd
• Knorr-Bremse (South Africa) (Pty) Ltd
• Lucchini South Africa (Pty) Ltd
• Passenger Rail Agency Of South Africa
• Progress Rail Sa (Pty) Ltd
• R And H Rail (Pty) Ltd
• Safreight Logistics (Pty) Ltd
• Siemens (Pty) Ltd
• Surtees Group Holdings (Pty) Ltd
• Swasap (Pty) Ltd
• Thelo Infrastructure Development (Pty) Ltd
• Tmh Africa (Pty) Ltd
• Transnet Soc Ltd
• Traxtion Sheltam (Pty) Ltd
• Trident South Africa (Pty) Ltd
• Versa Rail (Pty) Ltd
• Wabtec South Africa Technologies (Pty) Ltd

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