Traxtion receives first locomotives in R3.4bn rail investment

Private freight operator Traxtion has taken delivery of the first eight Wabtec C28 locomotives at the Port of Durban. This marks an operational step in the execution of its R3.4 billion rolling stock investment strategy as South Africa moves to implement third-party rail access.

Shipped from New Zealand, the eight locomotives represent the initial tranche of a planned four-shipment rollout that will introduce 46 locomotives over the next two years.

The units will be moved to the Traxtion Rail Services hub in Pretoria, where refurbishment and technical upgrades are set to begin in September 2026 prior to entering commercial mainline service.

Read: Traxtion ramps up bid to build Africa’s biggest rail company

Capital structure and capital allocation

The total R3.4 billion programme blends rolling stock acquisitions across two primary equipment categories:

Locomotive fleet allocation: R1.8 billion allocated to acquire, upgrade, and deploy 46 locomotives.
Wagon procurement: R1.6 billion earmarked for the acquisition of 920 freight wagons.

Funding for the capital outlay follows the successful close of a R1.5 billion equity subscription underwritten by Harith, Stanlib, and Standard Bank.

Contextualising the connection between private capital flows and regulatory execution, James Holley, CEO of Traxtion, stated: “The future of freight depends on collaboration between government and the private sector, backed by the kind of long-term investment needed to build capacity and unlock economic opportunity.

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“Every investment of this nature creates a multiplier effect that extends beyond rail, supporting jobs, strengthening supply chains and enabling economic growth.”

Regulatory reform and network access

The delivery coincides with ongoing structural reforms led by Transport Minister Barbara Creecy to transition South Africa’s freight rail framework from policy formulation into operational implementation.

Central to this transition is enabling private train operating companies (TOCs) to secure third-party access to the national rail grid, which has historically been restricted.

A key regulatory instrument expected to govern network access terms and commercial parameters is Version 4 of the Rail Network Statement, aimed at establishing transparent rules for private operators committing long-term capital.

Read:
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Addresssing the necessity of policy clarity for capital markets, Holley noted: “The transformation of South Africa’s rail sector will require sustained investment, with a collaborative approach and keeping innovation at the heart of any new development.

“While policy reform provides the framework for greater private sector participation, infrastructure investment is what enables that vision to become an operational reality.

“For reform to succeed, policy must be matched by investment. The cost of trains means that businesses need to raise significant amounts of equity and debt.

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“Equity investors into the sector need certainty which encourages long-term commitments, and the next version of the Network Statement is expected to be an important step towards creating that certainty. Once equity has been raised debt capital markets open up.

“When equity and debt capital markets have the confidence to invest, the benefits extend well beyond individual operators to manufacturers, engineering businesses, suppliers and the communities that depend on a stronger economy,” Holley said.

Capacity targets and economic localisation

Government targets aim to elevate South Africa’s total national annual freight rail volumes from current levels of roughly 160 million tonnes to approximately 250 million tonnes through public-private collaboration.

Traxtion estimates that its 46-locomotive investment program will add roughly 4.5 million tonnes of freight carrying capacity to the network.

The localised engineering and technical scope embedded in the project includes:

Local content targets: 78% local procurement and 60% local content across the overhaul lifecycle.
Employment creation: Creation of 665 permanent, highly skilled jobs across engineering, refurbishment, and operations.
Technical upgrades: Re-powering locomotives with new-generation 3 300 horsepower Wabtec engines to improve fuel efficiency and lower emissions.

Read:
What Traxtion’s R3.4bn investment means for SA freight rail
Traxtion kickstarts private SA rail boom with R3.4bn investment

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