South Africa is revamping its rail logistics infrastructure and services through strategic investments and partnerships to enhance mineral distribution across local and export markets.
The upcoming African Mining Week (AMW) conference – Africa’s premier gathering for mining stakeholders, scheduled for October 1 – 3, 2025 in Cape Town – will feature a dedicated panel discussion exploring the readiness of Africa’s logistics sector to drive increasing mineral flows. Titled From Mines to Markets: Strengthening Trade and Connectivity for Africa’s Mineral Future, the panel will showcase cooperation between mining projects and logistics operators in building a competitive mineral trade ecosystem.
In August 2025, South Africa approved licenses (https://apo-opa.co/3HFsGxn) for 11 new private operators to run trains and logistics services across its national rail network. State-owned logistics company Transnet will grant 10-year licenses enabling new private investments in rail infrastructure and unlocking an additional 20 million tons of freight annually from the 2026/27 financial year. The milestone aligns with South Africa’s target to raise total rail haulage to 250 million tons per annum by 2029, covering minerals and other key goods.
Transnet has also entered into strategic partnerships with mining firms to boost rail efficiency. The firm signed an agreement with Exxaro Resources in August 2025 to improve rail infrastructure and expand capacity between the mining firm’s 3.6 million tons per annum Leeuwpan coal mine in Mpumalanga and domestic, regional and international markets. The partnership supports Exxaro’s 2025 sales target of 38.3 to 42.4 million tons of coal, including up to 7.2 million tons for export, while advancing South Africa’s broader goals of export growth, GDP expansion and job creation. Similarly, in July 2025, United Manganese of Kalahari (UMK) (https://apo-opa.co/47UHRNB) concluded a 10-year deal with Transnet to transport manganese from its Northern Cape operations to ports for export, bolstering the country’s drive to maximize critical mineral exports under its upcoming Critical Minerals Strategy (https://apo-opa.co/3Vw5TXQ).
A series of funds have also been allocated to strengthen rail and port operations. In July 2025, an additional R94.8 billion in government support was approved for Transnet, following a R51 billion package in May 2025. International partners have also stepped in, with the New Development Bank extending a $278 million loan and the African Development Bank approving a $1 billion loan to upgrade the country’s logistics backbone.
At AMW 2025, these milestones will be unpacked to assess their impact on South Africa and the wider continent’s mining and logistics landscape, while underscoring the crucial role of rail in ensuring sustainable growth across Africa’s mineral value chains.
Distributed by APO Group on behalf of Energy Capital&Power.
