By James Holley, CEO of Traxtion
Rail is a long-term business. Locomotives can operate for decades. Rail infrastructure takes years to develop. And meaningful freight capacity is built through long-term investment.
As Traxtion marks 39 years in business,it is an opportunity to reflect on a remarkable journey of growth, resilience and innovation, and on the lessons learned from nearly four decades of operating across Africa’s freight rail sector.
Since launching in 1987, Traxtion has grown into a private rail business operating across multiple African markets, providing freight services, rolling stock leasing, technical services and skills development.
Along the way, we’ve navigated changing markets, evolving operating environments and major industry transformation. Through it all, one lesson has remained constant: building sustainable freight rail capacity requires patience, long-term commitment, the confidence to invest in the future and, above all, an unwavering commitment to the quality of the services we provide.
Today, South Africa’s rail sector is entering an important new phase
While demand for efficient freight logistics continues to grow, momentum around rail reform is building. We view this as a significant opportunity to strengthen rail’s contribution to economic growth, improve supply-chain efficiency and achieve greater regional connectivity.
What does this mean? Private operators have an important role to play by bringing investment, expertise and operational capability to the table for the industry. A valuable lesson we have learned over the past 39 years in this regard is that meaningful investment builds confidence in the sector’s future. While opportunity attracts investment, certainty sustains it.
At Traxtion, our confidence in the future of rail is reflected in our actions
Our R3.4 billion rolling-stock investment programme, which includes 46 locomotives and 920 wagons, represents one of the most significant private rail investments announced in South Africa in recent years. The first locomotives have already arrived, forming part of a phased expansion programme designed to increase freight capacity and support economic activity.
However, our experience has shown that freight capacity is about far more than just rolling stock. When the broader ecosystem that supports rail operations becomes more dependable, sustainable growth happens.
Such an insight resulted in our R120 million investment in Rail Services Hub in Rosslyn, Pretoria in 2020. This 50,000-square-metre facility provides maintenance, refurbishment and overhaul services. With this substantial investment in these technical services, we’ve certainly helped to ensure that assets remain productive, while also supporting suppliers, creating job opportunities and strengthening the broader rail industry through our localisation programs.
Just as important is investing in people
New locomotives, advanced facilities and digital systems can only deliver value when there are highly skilled people ready to operate, maintain and support them. Through our world-class Training Centre, bursaries and various youth development initiatives, we are actively creating pathways into rail careers by developing the technical and operational skills needed for the industry’s future.
This steadfast commitment to ensuring that knowledge is transferred between experienced rail professionals and the next generation is imperative. By partnering with higher education institutions, we believe that the additional practical learning opportunities we offer help prepare young people for meaningful careers in this evolving sector.
Looking back on 39 years in rail, one of the most encouraging developments is the increased recognition of rail’s importance to economic growth, trade and supply-chain resilience. The opportunities ahead are substantial, but exciting too. The value of this is not lost on us and we recognise that it will require further investment, strategic collaboration and a continued focus on building both capability and capacity for future growth.
We are immensely proud of how far we’ve come in almost four decades, and grateful to the employees, customers and partners who have been part of Traxtion’s journey so far.
Our next chapter will no doubt continue to be defined by how effectively all investment translates into reliable services, productive assets, skills development and long-term industry growth. After 39 years, our outlook remains firmly optimistic.
We believe the future of freight rail in South Africa, and indeed across the African continent, is bright, and we are excited to continue playing our part in helping unlock that future of further prosperity and growth.
