By: Business tech

Private rail operator Traxtion has announced a R3.4 billion investment in new rolling stock, marking the largest private rail investment in South Africa. The program includes the acquisition of 46 diesel-electric locomotives from New Zealand's KiwiRail, which will be upgraded in partnership with global manufacturer Wabtec.

Traxtion CEO James Holley stated the investment is a direct vote of confidence in South Africa’s ongoing rail reforms and the opening of the state-owned network to private operators. He described the policy changes as "long overdue" and emphasized that the company's involvement in the consultation process reinforced its decision to commit capital. The locomotives, deemed suitable for Southern Africa’s narrow-gauge network, present a rare opportunity to secure a high-quality fleet quickly and cost-effectively.

The investment is expected to address a critical freight capacity shortfall, noting that current rail volumes fall significantly below national demand. Holley highlighted substantial local benefits, with 79% of the contract value flowing to South African companies and the creation of 662 direct jobs. The first upgraded locomotives are scheduled to enter service within the next 12 months, offering a rapid boost to the country’s logistics capacity. Furthermore, Holley pointed to emerging regional integration opportunities, as regulatory reforms now allow for cross-border private rail operations, potentially extending the fleet's future impact beyond South Africa's borders.