South African logistics group Grindrod is preparing to begin commercial coal transportation on Transnet’s national freight rail network in 2027, marking a significant development in the country’s efforts to open its rail infrastructure to private operators, as reported by CNBC Africa. The announcement follows the successful completion of the company’s first test train on the North-East Corridor, making Grindrod the first private train operating company to run a train on South Africa’s national freight network under the new open-access framework. The test journey began in Komatipoort on November 1, 2026, with an empty train, before returning on November 2 carrying 2,991 tonnes of freight using Grindrod-owned locomotives and wagons.
Under its initial commercial plan, Grindrod expects to transport approximately 288,000 tonnes of coal during its first year of operations, using two allocated rail slots on the North-East Corridor. The company will primarily move coal from mining operations in Mpumalanga to its Matola Terminal in Mozambique, connecting South Africa’s mining heartland with an established regional export and distribution facility. Grindrod plans to deploy four locomotives and 100 wagons for the service, with the potential to increase annual volumes to 432,000 tonnes if additional rail capacity becomes available. Group Chief Executive Kwazi Mabaso said integrating rail operations with the company’s terminal infrastructure and regional logistics network would improve efficiency, reliability and value for customers.
The development represents an important step in South Africa’s freight rail reform programme, which seeks to reduce Transnet’s longstanding operational monopoly and attract private investment into a network constrained by capacity and operational challenges. Transnet Rail Infrastructure Manager has signed access agreements with 12 train operating companies, including 11 private operators and Transnet Freight Rail, creating opportunities for third-party participation across key freight corridors. The government expects private operators to contribute additional capacity and support its ambition to increase annual freight volumes transported by rail to 250 million tonnes by 2030. For Grindrod, the arrangement strengthens its integrated logistics model, while for South Africa it offers a practical test of whether greater private-sector participation can improve the movement of minerals and other goods to regional and international markets.
