Can private rail access benefit South Africa’s youth?

Much has been said and written about Transnet unveiling its inaugural Network Statement – specifically the possibility that private companies will make use of the rail network in South Africa. SIZWE MTSHALI hopes that this move will have much-needed consequences when it comes to the employment of the youth.

South Africa’s rail network has reached a watershed moment. In late 2024, Transnet unveiled its inaugural Network Statement, legally sanctioning private operators to lease rail corridors across the national infrastructure. Dubbed “open access”, this policy shift seeks not only to reinvigorate freight but also to cultivate promising occupational and entrepreneurial avenues, especially for youth.

South Africa faces substantial socioeconomic hurdles, notably its alarming 44.6% youth unemployment rate. The rail system, meanwhile, conveys far fewer goods than its carrying capacity allows, diverting cargo onto congested roadways. This inefficiency exacerbates logistical expenses and environmental degradation. Open access seeks to transform this dynamic by injecting fresh capital, innovation, and expertise into the rail sector to the benefit of South Africa’s emerging workforce.

The introduction of private railway operators translates immediately into job creation. Each new operator will necessitate qualified drivers, engineers, control centre administrators, technicians, and auxiliary staff. In the beginning, Transnet plans to allocate 16 train slots daily on major routes like the Durban–Gauteng corridor. With each slot anticipated to create about 30 direct jobs, this alone could produce approximately 500 new roles in the short term.

As rail volumes increase, with the goal of meeting government targets of 250 million tonnes per year, these opportunities could expand dramatically, potentially employing thousands more young South Africans.

The advantages extend beyond direct employment. Reliable rail services have the power to reinvigorate entire supply chains, forming new connections – from manufacturing and farming to mining. Improved rail services cut logistics costs, making local industries more competitive and allowing them to develop. This growth spawns indirect jobs in fields such as manufacturing components, warehousing, and transportation logistics. For instance, local small-to-medium enterprises could become key providers of spare parts, repair services, and technological solutions; complex networks depend on diversity for strength and resilience.

Encouraging youth entrepreneurship

Open access certainly lowers obstacles that block entry within the rail sector. Rather than investing heavily in facilities, young entrepreneurs might lease train routes and launch specialised services such as chilled fruit transport, dedicated coal shuttles, or sightseeing-focused trips attracting visitors. Cutting-edge innovations – including platforms enabling the sharing of locomotives or wagons – could further reduce early costs, making the rail industry available even to small, youth-led companies.

Government initiatives, such as granting preference to youth-owned enterprises when allocating time slots, or initiating a focused Rail Business Fund, might better promote youth involvement and success rates.

As rail embraces emerging technologies including hydrogen-powered trains, automated signal systems, and drone checks, the industry will necessitate sophisticated technical abilities. This presents a chance for technical colleges and universities to offer customised training programmes tailored to sector demands, supplying young South Africans with skills much sought after globally. Collaboration between private operators and educational institutions might fast-track recent graduates directly into jobs, cultivating a skilled workforce prepared for the future.

Looking ahead

If carried out well, liberalisation of the railways could take it from an ailing sector to a locomotive of economic success and a ladder for the young. With the right support and policies, private rail access could provide South Africa’s youth with a real opportunity to gain quality employment, enjoy entrepreneurial success, and access a more prosperous economic future. Ultimately, opening up the rails to private operators is not just about trains, it is about unlocking the potential of an entire generation.