The South African government plans to invest $2025 billion to improve rail signalling by 1,1. Finance Minister Enoch Godongwana said the significant investment will support the ambitions of PRASA, the Rail Transport Company of South Africa. This funding will contribute to the optimisation of 241 new trains used to renew rolling stock.
Major Investments in Transportation and Logistics
South Africa plans to allocate a total of $22,2 billion to transport and logistics infrastructure, with $5,5 billion allocated to the rail sector. These investments aim to reverse the decline in the country’s rail freight volume. In the 2017/18 financial year, rail freight volume fell from 226,3 million tonnes to 2023 million tonnes in 24/151,7. Accidents, inefficiencies and damaged infrastructure contributed to this decline. However, the government aims to improve this situation by introducing upgrades and increasing freight capacity.
Forward Looking Targets to Financial Year 2024/25
Minister Godongwana predicts that these improvements in rail infrastructure will increase freight capacity to 2024 million tonnes by the end of the 25/165,4 financial year. It will also lead to faster passenger services and lower cost travel opportunities for low-income households.
PRASA's Goals and Innovations
This major investment boost in rail in South Africa’s capital region is targeting 10-minute train intervals. PRASA continues its work to increase speed and reliability. In the process, the first train from Mirai Rolling Stock is expected to upgrade 30% of Metrorail’s rolling stock and 40% of its long-distance trains. This $390 million project is a significant step towards increasing efficiency in rail transport.
New Systems for Security and Growth
Improved railway signalling systems aim to eliminate past disruptions and improve safety. Authorities expect a robust railway network to be in place by 2025. These improvements will improve both freight and passenger transport operations. South Africa aims to support economic growth by strengthening its transport infrastructure through these investments.
Good Prospects for the Future
Minister Godongwana says efficient railways will reduce transport costs and connect South Africa’s diverse communities. That’s why the government is prioritising reviving the railway sector by providing major financial support. The $1,1 billion investment will mark a major milestone in the country’s railway infrastructure and will support developments in the rapidly growing sector.
This significant investment is seen as a significant step towards modernising and improving efficiency in South Africa’s railway system. Thanks to PRASA’s continuous innovation, the country aims to deliver safer, faster and more cost-effective rail services. The authorities expect to see clear results from these investments by mid-2025. These developments will provide both improved service for passengers and improved freight capacity for businesses.
