Logistics group Grindrod has confirmed that it has signed a rail access agreement (RAA) with the Transnet Rail Infrastructure Manager (TRIM), formally enabling its participation in South Africa’s Open Access Rail initiative.

These agreements form part of South Africa’s rail reform journey, as it advances increased private sector participation, aimed at improving the efficiency, capacity and competitiveness of the national freight logistics system.

Grindrod expects its operations under the Open Access Rail framework to start next year, subject to the completion of some remaining operational and contractual precedents.

The JSE-listed group aims to start operations in year one by transporting 288 000 t of material, using its two allocated slots on the North–East Corridor.

Grindrod will deploy its own locomotives (four) and wagons (100) on the corridor section running between Mpumalanga and Maputo, via Komatipoort.

The company will kick off with coal that it will move to its dry-bulk port facility in Matola, Mozambique.

The company says it intends to progressively increase overall volumes to a possible 432 000 t/y, subject to the allocation of additional slots, with operations to scale up significantly from 2029 onwards.

“We are pleased to formally enter the Open Access Rail framework through the signing of the RAA with TRIM,” says Grindrod CEO Kwazi Mabaso.

“Grindrod's strategic objective is to deliver integrated logistics solutions that are both cost-effective and efficient for our customers.

“Rail plays a pivotal role in enabling this strategy, unlocking more reliable, sustainable and efficient freight logistics solutions.

“The introduction of private rolling stock onto the Transnet network is a meaningful and necessary shift for the logistics industry,” adds Mabaso.

“It signals real progress in creating a more open, competitive and effective rail system in South Africa.

“We look forward to working constructively with Transnet and other stakeholders as the programme progresses toward operations.”

The North–East Corridor stretches from the Limpopo river at Beitbridge, in Limpopo, to Richards Bay on the east coast, via Komatipoort, and from Pyramid/Rayton/Emalahleni to Komatipoort.

The corridor currently carries 14% of Transnet Freight Rail’s volumes, and links the South African rail freight system with that of other countries in the region.

Eleven private train operating companies (TOCs) – which were last year allocated slots on South Africa’s mainline rail network – have now officially concluded RAAs with TRIM and are gearing up to begin operations.

At a ceremony in Johannesburg this week, TRIM confirmed that the TOCs were expected to inject an additional 24-million tonnes of freight capacity across the coal, manganese, container, fuel and general freight segments.

The initial TOCs to have received allocations were also confirmed as being ARC South Africa, Barberry, Grindrod, Interlinks, IRACEMA, Menar, Minrail, Motheo Logistics, Sharp Logistics, The Railway Corporation and TLD Marine, which includes MSC as a participant.