South African railroad company, Traxtion, has announced a R3.4-billion investment in new freight rolling stock.
This will involve 46 diesel-electric locomotives sourced from KiwiRail in New Zealand.
If all goes according to plan, it will be the biggest private rail investment in South Africa to date.
New trains for South Africa
According to BusinessTech, Traxtion CEO James Holley says the investment reflects strong confidence in South Africa’s rail reforms and the opening of the network to private operators.
He described the reforms as long overdue and said Traxtion is ready to help improve the country’s struggling freight system.
The KiwiRail locomotives offer a rare chance to secure a large, modern fleet suited to South Africa’s narrow-gauge tracks. Traxtion will also partner with global manufacturer Wabtec to upgrade them, delivering high-capacity, reliable units at competitive prices.
Holley says the investment will help introduce true private freight rail services in South Africa. Traxtion already operates similar locomotives across Africa, giving it confidence that the rollout will be smooth and compatible with existing infrastructure.
The deal also brings major local benefits; 79% of the contract value will go to South African companies, with roughly 60% becoming local content, supporting over 660 direct jobs and many more indirectly.
South Africa currently moves around 160–165 million tons of freight a year, far below the demand of 250 million tons. Traxtion hopes its new fleet will help close this gap and support economic growth.
The 46 locomotives and 920 wagons will be deployed locally, though regional cross-border opportunities are expanding as neighbouring countries adopt similar reforms. The first units are expected to go into service within 12 months.
