JOHANNESBURG - The strategy to open up South Africa's rail line to private players is finally attracting significant investment.
Freight company, Traxtion, has announced it will invest R3.4 billion in new locomotives and wagons as it prepares to run trains.
Government is allowing private firms to operate parts of the network as Transnet has struggled to provide reliable services.
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Rail in South Africa declined for years with freight cargo moving to the roads on mass, creating new transport issues.
Transnet's woes have been compounded by theft and sabotage.
The CEO of Traxtion, James Holley described the initiative saying, "Effectively, what the government has said is that Transnet on that line would be using only a portion of that capacity and the government said, 'We would like to invite the private sector to come and take up the latent capacity in that network'."
Holley said the company has signed an access agreement for long-term rights to use the network.