SOUTH AFRICA — Amid rising household expenses linked to global geopolitical tensions, the South Africa public transport reform agenda is gaining significant momentum. Transport Minister Barbara Creecy has announced a comprehensive push to build an integrated, safer, and more affordable transit network, shielding commuters and logistics operators from volatile global supply chain shocks and fuel price hikes.
Speaking at the official launch of Transport Month in October, Creecy highlighted the government’s resilience strategy. The 2026 theme, “Building a safe, sustainable, reliable and affordable transport system,” underscores the urgent need to stabilize costs for households, transit users, and the broader freight industry. This year’s observance marks a milestone, celebrating 21 years since the inaugural Transport Month was launched in 2005.
PRASA Rail Recovery Drives Commuter Affordability
A cornerstone of the government’s strategy is the aggressive recovery of passenger rail services by the Passenger Rail Agency of South Africa (PRASA), providing citizens with a highly subsidized alternative to road transport.
Over the past two years, PRASA has successfully restored 35 of its 40 priority passenger rail lines, with the Midway–Lenz route being the most recent addition. This infrastructural turnaround has yielded massive ridership growth. Audited figures show that PRASA passenger trips surged from 10 million in the 2020/21 post-pandemic period to 101 million by the end of the 2025/26 financial year.
To maintain this affordability, the Minister noted that peak-hour return trips for PRASA commuters remain heavily subsidized, costing between R12 and R15 depending on the distance traveled. Moving forward, PRASA will continue to refurbish tracks, signaling systems, and stations to increase service frequency and punctuality.
Formalizing the Taxi and Bus sectors
Recognizing that minibus taxis and buses remain the backbone of road-based transit, the Department of Transport is overhauling how the sector is funded and managed. The government is transitioning the public transport grant into a unified support model accessible to both bus and taxi operators on selected routes.
This reform is anchored on five foundational principles: integration, sustainability, fairness, safety, and commuter affordability, with ongoing consultations ensuring a workable model for all stakeholders.
Additionally, the Department is partnering with the taxi industry to formalize and right-size the sector through two major interventions:
– Repurposing the Taxi Recapitalisation Grant: This move aims to reduce industry risk, enabling operators to purchase more affordable vehicles with lower monthly repayments.
– Pilot Transport Operating Companies: The establishment of one pilot company per province to test innovative management and investment models.
Transnet Port Separation and Freight Logistics
On the freight and logistics front, Cabinet has officially backed the establishment of the Transnet National Ports Authority (TNPA) as an independent, stand-alone state-owned company. This structural separation is designed to drastically improve operational performance, infrastructure reliability, and the global competitiveness of South Africa’s supply chains.
As an independent entity, the TNPA will retain its revenue to directly reinvest in port equipment and infrastructure. This agility has already yielded results, with three South African ports recently recognized as the “most improved” in a World Bank study.
The separation process will be strictly governed by principles that ensure fair compensation for Transnet (based on independent valuations), equitable liability allocation, long-term financial sustainability, and the protection of workers and customers. Crucially, it will preserve strategic state ownership of national port infrastructure while boosting the investment capacity of both entities. Cabinet has also authorized the TNPA to investigate bringing in a minority equity partner from a domestic Development Finance Institution (DFI).
Opening the Rail Network to Private Investment
Guided by the 2022 White Paper on National Rail Policy and the 2023 National Freight Logistics Roadmap, the government is successfully repositioning rail as the primary backbone for moving goods.
In March, the Department approved eleven private Train Operating Companies (TOCs) to utilize the state-owned national rail network, injecting private capital and expertise into the sector with operations slated to begin in April 2027. To provide these operators with the certainty needed to secure rolling stock and staff, the Transnet Rail Infrastructure Manager published a second Network Statement in July.
Furthermore, the Draft National Rail Master Plan—currently open for public comment—outlines a vision for a highly regulated, interoperable, and well-maintained state-owned railway network.
These policy shifts are already translating into tangible volume increases. Transnet’s 2025/26 results indicate rail volumes reached approximately 167.9 million tonnes against a target of 180.6 million tonnes, putting the country on track to achieve the ultimate political goal of 250 million tonnes annually.
Billions Deployed for Infrastructure Upgrades
Achieving these ambitious tonnage targets requires massive capital injection. Through the Budget Facility for Infrastructure, the government has already approved and deployed R16.8 billion in public investment across coal lines, iron ore routes, and port infrastructure. Applications for an additional R23.6 billion are currently in development.
Private-sector investment is also being actively facilitated through several projects currently on the market, including the Ngqura Manganese Export Corridor, the Richards Bay Dry Bulk Terminal, and the upcoming Gauteng-to-Durban container corridor.
To showcase the tangible results of these investments, the Department has scheduled a media visit to the Northern Cape on Monday, 12 October. The tour will allow stakeholders to view the ongoing rail upgrades to the iron ore line during the annual maintenance “shut.”