R600bn rail revolution — high-speed trains, smart tickets and jobs ahead

Transport Minister Barbara Creecy has launched a new Request for Information (RFI) process, formally inviting the private sector to invest in South Africa’s passenger rail network as part of government’s efforts to modernise and expand the system.

Speaking at a media briefing Creecy said the initiative marked “another important milestone in our collective journey to make rail the cornerstone of our national transport and logistics system.”

She said the Passenger Rail Agency of South Africa (PRASA) had made significant progress in restoring its operations, with 35 of its 40 passenger corridors successfully commissioned and an audited annual figure of 77 million passenger journeys recorded by the end of May 2025.

“To continue on the recovery path, PRASA requires additional investment that cannot be carried by the fiscus alone,” Creecy said.

“The RFI process will help us gather innovative ideas and solutions that will guide future requests for proposals from the private sector.”

Creecy said the RFIs would cover several priority projects, including the introduction of a smart ticketing system, upgrades to major train depots, commercialisation of PRASA’s fibre-optic network, and the development of new regional rapid rail services.

She said government wanted to move towards a seamless, digital fare system that would make travel easier for commuters.

“We’re moving towards a single, tap-and-go ticket that you can use across trains, buses, and even taxis,” she said. “No more queues or paper tickets — just one account-based system that makes travel easier and helps us manage revenue transparently and efficiently.”

Creecy said the private sector would also play a key role in modernising PRASA’s major maintenance depots in Braamfontein and Wolmerton.

“We’re partnering with the private sector to modernise our major maintenance depots at Braamfontein and Wolmerton,” she said.

“This will mean faster train repairs, better reliability, and new investment in nearby areas — creating jobs and boosting local development. It is for this reason that private sector participation is of paramount importance, given the magnitude of this project.”

Creecy added that PRASA’s extensive fibre network, laid alongside railway lines as part of its signalling upgrades, could become a new commercial asset.

“We’re opening the door for private partners to help us turn that network into a source of income — by offering broadband and digital services — while strengthening safety and real-time communication across the rail system.”

She said another focus area would be developing regional rapid rail services to connect major cities such as Pretoria, Johannesburg, Polokwane, Musina, Mbombela and Durban. These trains would run at up to 200km/h, while a proposed high-speed line between Johannesburg and Durban could reach 300km/h.

“These lines will shorten travel times, reduce travel costs, take pressure off our roads, and stimulate new development in towns along each route,” Creecy said. “These regional projects are not possible without private sector partnership.”

She also announced plans to invite skilled operators to lease and manage PRASA’s new and existing fleet.

“PRASA’s new blue trains, built at the Gibela factory in Nigel, are world-class,” she said. “At the same time, we’re partnering with manufacturers to position South Africa as Africa’s leading train builder — creating jobs, boosting local manufacturing, and turning our country into a regional export hub.”

Creecy stressed that the RFIs were not tenders, but rather “an invitation for the market to help us design the future of rail.”

The initiative forms part of government’s broader Freight Logistics Roadmap, which aims to restore efficiency and competitiveness in the transport of both goods and passengers.

It also aligns with the National Rail Policy of 2022 and the Private Sector Participation Framework of 2023, which maintain public ownership of rail and port infrastructure while encouraging private investment.

“To guide the improvement of passenger rail, we have set a clear target over the next four years — to ensure 600 million rail passenger journeys per annum by 2030,” Creecy said.

“We are eager to partner with the private sector to realise this target and build a 21st-century transport system that strengthens competitiveness, deepens regional integration, and drives inclusive economic growth.”

She confirmed that the Department of Transport had signed a Memorandum of Agreement with the Development Bank of Southern Africa (DBSA) and the National Treasury, appointing the DBSA as the implementing agent for the department’s Private Sector Participation Unit.

The PSP Unit, she said, was being capacitated to conceptualise bid windows and develop formal Requests for Proposals.

Creecy noted that a similar RFI process launched earlier in 2025 for Transnet’s rail and port freight logistics sector attracted 162 formal responses, including 52 from 12 foreign countries. Transnet is expected to issue its first Request for Proposal before the end of the year, followed by three more in the first half of 2026.

The passenger rail RFIs and the freight analysis results report will be available on the Department of Transport and DBSA websites. The online portal opens on October 26 and closes on December 15, 2025, she said.