Traxtion will invest 199 million dollars in a major fleet expansion as South Africa’s rail reform opens the national freight network to private operators. The company confirmed the plan after securing approval to operate on the state-owned network, a development that has encouraged new capital inflows into the logistics sector. The investment includes the purchase of 46 diesel-electric locomotives and about 920 freight wagons, according to Reuters.
The locomotives consist of 42 U26C units that will undergo partial modernisation and four fully refurbished C30-8MMI models. Over time, the U26C engines will be upgraded to the more efficient C30MEI specification, featuring fuel-saving systems and modern control technology. Rail Journal reported that the first refurbished units are expected to begin operating around the third quarter of 2026.
Traxtion says the expanded fleet will help close South Africa’s freight rail capacity gap by as much as five percent and create more than 660 permanent jobs once operations begin. Engineering News highlighted that the wagons will be built locally with at least 60 percent local content, supporting domestic manufacturing and technical skills development.
Chief executive James Holley called the investment a significant signal of private-sector confidence in South Africa’s rail reform efforts. IOL reported that Holley described the move as a catalyst for improving logistics efficiency, reducing reliance on road transport and boosting export competitiveness, particularly for bulk commodities.
