R8.9 billion to fix the 861 km line that carries South Africa's iron ore to Saldanha

Government is putting R8.9 billion into restoring the 861 km Iron Ore Export Line that links Sishen in the Northern Cape to the Port of Saldanha in the Western Cape.

The figure covers the Transnet Rail Infrastructure Manager’s long-term Ore Line Restoration Programme, which runs until 2030. Transport Minister Barbara Creecy gave the number during a site visit to the line on Monday, timed to the annual maintenance shutdown.

“The Transnet Rail Infrastructure Manager’s (TRIM) long-term Ore Line Restoration Programme, which runs until 2030, is valued at approximately R8.9 billion and is aimed at restoring reliability, improving capacity and supporting economic growth through a safe, efficient and reliable rail network,” Creecy said.

She described the corridor as more than track. “This corridor is therefore far more than a railway line. It is an economic artery that supports exports, industrial growth and employment across our economy,” she said. “When this corridor performs well, mines can move their commodities efficiently, exporters can reach international markets, ports can operate more effectively and businesses across the logistics value chain can grow. It also strengthens South Africa’s position as a reliable trading partner.”

The shutdown runs from 6 to 16 October and gives TRIM a window for work that is difficult to do while trains are running. Teams are replacing rail and sleepers, screening ballast, replacing and maintaining turnouts, accelerating track maintenance, rehabilitating formations and installing culverts. Electrical and signalling maintenance is also underway.

“These may sound like highly technical activities, but ultimately they have a simple purpose: to build a safer, more reliable and more efficient railway,” Creecy said. “Safety is not separate from delivery. It is the foundation of delivery. The success of this shutdown will be measured not only by the maintenance completed, but by ensuring that every person returns home safely and that the corridor is restored to service without compromise.”

On the money, government has allocated R3.4 billion through the Budget Facility for Infrastructure across the current and next financial years. This year TRIM will spend about R2.2 billion on restorative maintenance on the Ore Corridor, of which R1.5 billion comes from the BFI allocation.

Transnet is also spending R1.47 billion on ore line rolling stock maintenance, made up of R752.3 million for wagons and R721.9 million for locomotives. Similar amounts are set aside for rolling stock maintenance in the next financial year.

“These investments will support critical maintenance and overhaul programmes, including the 15GO and 43DGO locomotive overhaul programmes, while addressing long-standing maintenance backlogs and improving fleet availability, reliability and operational stability,” Creecy said. “Rail interventions are being complemented by strategic investments in the Port of Saldanha, ensuring an integrated corridor approach to restoring South Africa’s iron ore export capacity.”

At the port, the Transnet National Ports Authority is commissioning the Bulk Power Upgrade Project at a total capital investment of about R750 million. The upgrade increases the port’s power supply so that Transnet Port Terminals can run its third tippler and handle higher export volumes.

Creecy tied the work to employment in the communities along the line. For this October intervention, about 1,300 fixed-term contract opportunities have been created, with more than 600 indirect opportunities expected through associated economic activity. The programme also opens work for small, medium and micro enterprises in civil works, track-related services, logistics, transportation, plant and equipment support, material supply, accommodation and other support services, with larger contractors able to extend the benefits through subcontracting and local procurement.

She placed the programme inside the country’s rail reform plans. “It is important that we view today’s work within the broader context of South Africa’s rail reform programme. Government has made a clear policy choice to restore rail as the backbone of our freight logistics system,” she said. “A central component of this reform is opening the freight rail network to private train operating companies while retaining rail infrastructure in state ownership.”

Establishing the Transnet Rail Infrastructure Manager created a dedicated entity to manage and maintain the national rail network and provide access to it, and the Network Statement sets out the framework through which train operating companies can gain access.

“However, open access cannot succeed through policy and regulation alone. We need infrastructure that can turn reform from policy into practical implementation,” Creecy said. “Train operating companies must have confidence that when they invest in locomotives, wagons, people and operations, the infrastructure on which those investments depend is progressively becoming safer, more reliable and more predictable. That is why maintenance interventions such as the one we are witnessing today are fundamental to rail reform. We cannot invite greater volumes onto the railway without investing in the infrastructure that must carry those volumes.”

This report is drawn from the government’s own account of the site visit, published by SAnews (South African Government News Agency) at https://www.sanews.gov.za/south-africa/government-invests-r89-billion-restore-key-iron-ore-export-corridor. It summarises the programme and the minister’s remarks rather than reproducing the underlying Transnet or National Treasury records, and the R8.9 billion programme value and the other figures are as stated in that account.