A new milestone has been reached in South Africa’s efforts to strengthen its rail transport sector, with the signing of a fresh public-private service agreement between Johannesburg Stock Exchange-listed Exxaro Resources and State-owned Transnet Freight Rail (TFR). Operating through its dedicated division, TFR has entered into a formal service arrangement under the long-standing framework agreement between the two entities. This collaboration seeks to enhance logistics performance, with a particular focus on supporting Exxaro’s Leeuwpan coal mine turnaround strategy.
The agreement sets out clear performance standards, joint planning mechanisms, and long-term operational goals aimed at improving rail capacity. It reflects Exxaro’s commitment to efficiency and sustainability, while reinforcing Transnet’s mandate to safeguard logistics security. Both companies believe that the initiative will contribute to South Africa’s broader economic objectives by boosting trade competitiveness and ensuring reliable freight solutions. Exxaro CEO Ben Magara highlighted that the partnership will unlock significant value for the group, while Transnet Group CEO Advocate Michelle Phillips underscored the importance of rebuilding trust and ensuring that rail infrastructure supports industry-wide growth.
This development reaffirms the shared vision of both parties to improve the reliability of freight transport, stimulate economic activity, and strengthen the mining and transport sectors. It follows other notable agreements in the industry, such as Transnet’s recent ten-year contracts with Hotazel Manganese Mines and United Manganese of Kalahari, both secured under the Manganese Export Capacity Allocation framework.
At a national level, government efforts to expand access to the rail network are also gaining momentum. Environment, Forestry and Fisheries Minister Barbara Creecy recently confirmed that 11 of the 25 private operators that applied to run routes on Transnet’s network had met the necessary requirements and would soon begin contract negotiations. This marks an important step toward opening South Africa’s freight rail system, traditionally monopolised by the State, to a more competitive environment with increased participation from private sector players.
Overall, the Exxaro-Transnet agreement signals progress toward a stronger, more collaborative rail sector in South Africa—one that balances sustainability, efficiency, and inclusivity while driving national economic growth.
