In a rail reform milestone, Grindrod has become the first private train operating company (TOC) to operate on South Africa's national freight rail network under the country's new open-access framework.

The Transnet Rail Infrastructure Manager (TRIM) confirmed on November 3 that the inaugural test-train journey was completed on the North-East Corridor by the JSE-listed integrated logistics and shipping group.

The operation commenced from Komatipoort on November 1, with the empty leg, and returned on November 2, with 2 991 tonnes, using Grindrod-owned locomotives and wagons to demonstrate the company's readiness to commence services on the corridor.

Grindrod plans to begin commercial operations in 2027, when it expects to transport about 288 000 t in its first year, using its two allocated slots on the North-East Corridor.

The company will primarily move coal from Mpumalanga to Grindrod's Matola Terminal, in Mozambique, and indicates that it will use the period to assess prospects for additional rail allocations.

The milestone follows the signing of rail access agreements with 12 TOCs in May, comprising 11 private TOCs, including Grindrod, and State-owned Transnet Freight Rail (TFR), which has hitherto monopolised rail operations in South Africa.

TRIM CEO Moshe Motlohi described the successful completion of the test train as a landmark achievement for South Africa's rail reform programme.

“It demonstrates that open access is no longer a policy concept but an operational reality. Through collaboration with private operators such as Grindrod, we are creating a more competitive and efficient rail network that supports economic growth and strengthens South Africa's logistics capability,” Motlohi said.

Grindrod Limited CEO Kwazi Mabaso added that it was also an important milestone in the transformation of South Africa's freight logistics sector.

“As an integrated logistics provider, the ability to combine rail operations with our terminal infrastructure and corridor footprint enables us to deliver greater efficiency, reliability and value to our customers. We are proud to partner with TRIM in demonstrating the practical benefits of rail reform and helping restore rail as the backbone of bulk freight transport,” Mabaso added.

The development follows the publication in September of the fourth edition of the Network Statement by TRIM, which is said to address several key issues raised by industry stakeholders to ensure the bankability of investments in rail operations.

It also comes amid moves to assemble a technical task team before year-end to help government finalise the approach to be taken to the corporatisation of TRIM, which will involve its separation from the Transnet Group.

TRIM, which is responsible for South Africa’s rail network, was established as a separate Transnet Group subsidiary from TFR in October 2024 ahead of moves by government to open up the rail network to private TOCs.

The reform has been linked to raising freight rail volumes to 250-million tonnes by 2030, with TFR having railed 167.9-million tonnes in 2025/26.

TRIM’s unbundling from Transnet and the establishment of a Transport Economic Regulator are viewed as key to levelling the playing field for increased private sector participation, as well as to positioning the entity to increase much-needed investment in the network.