Transnet, the state-owned ports and rail operator, will submit requests of about R35bn (around US$2.2bn) to the Infrastructure Budget Facility. Transport Minister Barbara Creecy confirmed this in an interview on 13 August 2026. This new bid builds on roughly R13bn (US$803m) already approved by the National Treasury, including R11.2bn directed to rehabilitate iron ore and coal rail corridors and improve efficiency at the Durban Container Terminal, according to Treasury officials. The Infrastructure Budget Facility has approved about R104bn of projects since inception. Infrastructure bond issuance has become a permanent feature of the sovereign funding mix, which anchors the credibility of the Transnet financing request.
Rail reform: private operators test a new model
Transnet’s freight rail recovery plan now rests on a hybrid model. It combines fresh public capital with private operating capacity. In May 2026, the Transnet Rail Infrastructure Manager (TRIM) signed rail access agreements with 11 new Train Operating Companies. These agreements allocate slots on core freight corridors for coal, manganese, containers, fuel and general cargo. Government’s Operation Vulindlela reform programme highlights these agreements as a key step — moving from a single operator network to a multi-operator system.
The new operators are expected to add about 24 million tonnes of annual freight capacity over the next 18 months, according to infrastructure research and government briefings. TRIM’s projections suggest the additional capacity could rise to as much as 52 million tonnes over five years. This supports a national goal of lifting annual rail volumes from roughly 180 million tonnes to 250 million tonnes by 2030. Rail access agreements now carry an initial 15-year term. This gives operators longer visibility on returns while allowing either party to request termination with six months’ notice.
Treasury data show that the earlier R11.2bn allocation to Transnet’s rail and Durban port corridors is structured to crowd in up to R18bn of private capital. This links public support to measurable capacity gains. Transnet’s broader five-year recovery strategy sets out capex of about R129bn. Most of the spend targets stabilising reliability and protecting existing volumes, according to recent company statements. Against that backdrop, the new R35bn bid looks less like a standalone bailout and more like a targeted funding layer on top of a multi-year investment programme.
What does the deal mean for port and logistics investors?
The fresh Transnet financing request is closely tied to port modernisation and new partnership structures. At Durban, government financing already supports upgrades at the container terminal. Concession-style deals are drawing private funding into specialised facilities, including a 20-year agreement for fresh produce handling. At Cape Town, Transnet National Ports Authority has issued a request for proposals for a 25-year concession to finance, redevelop, operate and maintain the multipurpose terminal. This signals deeper private participation in port infrastructure.
Government has also launched a request for information for private partners to refurbish, finance, operate and maintain low-density branch lines in the B-network. This extends reforms beyond core corridors. Officials frame these moves as part of a wider shift — using competitive concessions and long-term contracts to stabilise logistics performance while limiting direct fiscal exposure. The combination of fresh Treasury-backed funding, concession-based port projects and multi-operator rail access is designed to lift freight throughput. Logistics constraints have held average GDP expansion below 1% a year for more than a decade.
One senior infrastructure analyst summed up the emerging thesis crisply: Transnet’s recovery strategy now links public capital, private operators and regulatory reform into a single freight investment story. For institutional investors, the key signals lie in the government’s willingness to keep infrastructure bonds as a permanent funding tool, Transnet’s execution on its R129bn capex plan, and the ability of the 11 new operators to deliver the promised 24 million tonnes of added capacity within 18 months. Over the next two years, the durability of these reforms will be measured in corridor throughput, port dwell times and deal flow in rail and port concessions — metrics that investors would be wise to track closely.
Source: 360Mozambique
Quick answers
Transnet plans to submit requests of about R35bn (around US$2.2bn) to the National Treasury’s Infrastructure Budget Facility for projects running through 2030. This builds on roughly R13bn (US$803m) already approved.
The Transnet Rail Infrastructure Manager signed rail access agreements with 11 new Train Operating Companies in May 2026. These operators are expected to add about 24 million tonnes of annual freight capacity within 18 months.
Transnet’s five-year recovery strategy sets out capex of about R129bn. Most of this spending targets stabilising reliability and protecting existing freight volumes on key corridors.
