Traxtion Invests $199 Million in New Trains as South Africa Opens Rail to Private Operators
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South African freight operator Traxtion will invest 3.4 billion rand ($199 million) in locomotives and wagons to operate on Transnet’s main freight lines following the introduction of third-party access reforms aimed at easing capacity constraints and shifting volumes from road to rail.
The investment programme includes the acquisition of 46 Wabtec diesel-electric locomotives sourced from New Zealand’s KiwiRail—42 partly modernised U26C units and four fully modernised C30-8MMI models—at a cost of 1.8 billion rand, plus approximately 920 wagons priced at 1.6 billion rand. Working with Wabtec, Traxtion will upgrade the U26C fleet at its Rosslyn Rail Services Hub to C30MEI specification featuring new 7FDL-EFI engines and Brightstar control systems.
CEO James Holley said the additional rolling stock will address roughly 5% of South Africa’s freight rail capacity shortfall, with operations targeting bulk routes.
Traxtion is in advanced discussions with mining and agricultural exporters ahead of service launch.
The investment represents one of the first major private-sector commitments since rail liberalisation, designed to alleviate pressure on state-owned Transnet and support economic recovery through improved logistics efficiency.
