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Transnet said it's in talks to run additional trains between a port in Gqeberha in the Eastern Cape province and the country's commercial hub of Gauteng to better link the two automotive manufacturing hubs.
The state freight rail and ports company has faced withering criticism from carmakers to coal and iron ore miners as its deteriorating rail service has forced an increasing amount of commodities and cars to be transported by trucks. The head of Volkswagen's South African unit has said car companies are in talks with Transnet to improve the line and run privately-operated trains on it.
Transnet in response to queries said it's in talks with the government and funders "to expand the Southern Corridor rail network" to add three 50-wagon trains for use by automotive companies daily between Port Elizabeth in Gqeberha and Gauteng. Later, the state-owned company said, it would expect private companies to invest in rail infrastructure and trains to boost the service.
Companies such as VW and Isuzu Motors currently rely almost entirely on trucks to get their vehicles from their plants near Gqeberha to Gauteng, South Africa's biggest car market. Companies with plants in Gauteng, such as Ford Motor Co. and BMW AG, could use the line to move cars to the port in the coastal city as an alternative to the congested terminal in the city of Durban.
Transnet said it's also in talks with VW "to resurrect the existing rail haulage service" between the carmaker's plant in Kariega, near Gqeberha, and Gauteng. A test train run was delayed by floods in the Eastern Cape, it said.
The state company said it also wants private train operators and investors to help expand shipments of manganese to Port Elizabeth and the nearby port of Ngqura.

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Eskom CEO Dan Marokane has confirmed that the National Transmission Company South Africa (NTCSA) is on track to begin trading on July 1 and that the new entity is being set up to operate as a fully independent subsidiary even though it will continue to be owned by Eskom Holdings and be located on the Megawatt Park campus.
At a briefing hosted to enable Marokane to reflect on his first 100 days and to outline his strategic priorities, the CEO underlined that the NTCSA's independent board was determined to provide "equal access" to the network as envisaged when the unbundling was initiated.
He also reported that efforts were under way to reconfigure the office arrangements at Megawatt park so that NTCSA had a distinct identity, including its own entrance.
"Megawatt Park has got multiple wings, with separate entrance doors, and at some point . . . [the South African Revenue Service] was located here and SARS was independent from us, even when we stayed in the same building," he said.
"I think what becomes important is the drive that the independent NTCSA board will have, working with the management team, to ensure that it provides equal access to all participants in the sector."
Marokane also stressed the priority being given to investing in new grid capacity in line with a Transmission Development Plan that envisaged the addition of 14 000 km of new power lines by 2032, as well as the installation of 122 600 MVA of new transformation capacity.
He acknowledged the slow pace of deployment in 2023/24, but attributed this to bottlenecks in the supply chain, which had shrunk as a result of years of underinvestment and, thus, required time and effort to re-establish its delivery capacity.
A target had been set for Eskom to work with the domestic industry to scale up to deliver more than 800 km a year of new transmission and distribution lines in the coming 24 to 36 months, he revealed.
In addition, group executive for transmission Segomoco Scheepers confirmed a report was being finalised regarding the NTCSA's approach to independent transmission projects, which would be built, operated and owned by the private sector for a determined period before being transferred to the ownership of the NTCSA.
Scheepers said that work on the potential for independent transmission projects was well advanced.
"This report will then be shared, once that work is adequately advanced, with Eskom as the shareholder of NTCSA and then also with the Minister of Electricity, and then we'll be in a position to discuss the details in public."
Marokane also reported that additional advisory capacity was being sought to support the unbundling of the National Distribution Company South Africa in the coming 12 to 24 months, which would be followed by the establishment of a separate generation entity.
Describing these transactions as "complex", he said it had become necessary to bolster both internal capacity and to recruit external advisers to give itself the best chance of meeting the timelines that had been set.
A new executive structure would also be implemented to consolidate Eskom's operational recovery, while leveraging synergies across the unbundled entities, including consolidating corporate services, as well as pursuing future prospects, including in renewable energy.

Amid all the political upheaval, work is continuing with plans to pilot a model for introducing independent transmission projects. Engineering News editor Terence Creamer discusses the prospects.

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The National Treasury has confirmed that South Africa is moving to pilot a model that will enable the private sector to participate directly in the development and operation of transmission grid infrastructure, drawing lessons from the country's experience in procuring generation capacity from independent power producers (IPPs).
Deputy director-general Mmakgoshi Lekhethe reports that the model, which has been mooted by Electricity Minister Kgosientsho Ramokgopa for some time, is receiving priority attention in light of the scale of the investment required to unlock grid capacity for new renewables investment.
Speaking at the launch of a new report on mobilising clean energy, Lekhethe said that Eskom had been given permission to raise funding for grid investment despite still being bound by the terms of a debt-relief package that constrains its ability to raise new debt more generally.
However, government had also concluded that private finance and capacity would be required if South Africa was to add the grid infrastructure needed to unlock more renewables, including 1 400 km a year of new power lines by 2032.
"Given this, we are working very hard across the government to pilot a model that can bring in the private sector to help us scale up that much needed investment.
"This means that we may have to use the same model that we use for generation for transmission, while obviously making sure that it speaks to the unique set of circumstances faced by transmission," she said.
Speaking on the same platform ahead of the new governance arrangements that would follow South Africa's 2024 elections, during which no party emerged with an outright majority, special adviser to the Electricity Minister, Silas Zimu, expressed confidence that the Energy Action Plan (EAP) would continue, including reforms to enable private participation in the grid.
"We're not going to change it [the EAP]," Zimu insisted.
NOT A 'CUT & PASTE' EXERCISE
Meanwhile, IPP Office head Bernard Magoro argued that the IPP programme had proved it was possible to procure electricity infrastructure from the private sector. However, he said it would not be possible to simply "cut and paste" the model for the deployment of independent transmission projects (ITPs).
Magoro stressed that servitude acquisitions posed a distinct challenge to ITPs and South Africa would have to clarify upfront whether or not the National Transmission Company South Africa (NTCSA), which is in the process of being vertically separated from within Eskom, would be expected to lead land acquisitions and/or expropriations for such projects.
In addition, the fact that the ITPs would be transferred back to the NTCSA after a period of private operation would add another layer of complexity and risk that would have to be addressed.
Magoro argued, though, that some of the generic lessons from the IPP experience relating to risk allocation and the need for ongoing stakeholder buy-in and convergence, including with the National Energy Regulator of South Africa, could be transferred to ITP programme.
That said, he also cautioned that it could take some time to establish a procurement rhythm, noting that an entirely new "ecosystem" of participants would have to be created, as very few IPPs saw themselves as grid operators.
Meanwhile, Lekhethe reported that the National Treasury was also prioritising other initiatives to improve the environment for higher levels of clean-energy investment and to ensure that limited government resources were used to stimulate such investments.
While describing the R300-billion in contingent liabilities arising from government guarantees extended to support IPP procurement as "unsustainable", she revealed that work was under way with the African Development Bank and the World Bank to assess prospects for a "credit guarante

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A new benchmarking assessment of South Africa's electricity grid access queueing mechanisms indicates that Eskom's systems are slower and less transparent than those being implemented in developed and developing countries analysed as part of the study.
Published by the RES4Africa Foundation, the report includes case studies of the grid management frameworks being implemented in Brazil, Chile, Italy and by PJM Interconnection in the US.
These systems have been assessed against five key performance indicators, namely: grid connection timeframes, the cost of connection, regulatory requirements, queue management, and transparency.
South Africa's framework is in flux and is being governed currently by Interim Grid Capacity Allocation Rules (IGCAR).
These were introduced following the failure of the sixth public renewables round when none of the wind projects vying for a 3 200 MW allocation were selected because the capacity on which the projects were based had been absorbed by independent power producers being pursued on the back of private power purchase agreements.
Eskom argued that the new rules would prevent so-called grid hogging as they were based on prioritising shovel-ready projects rather than processing applications on a 'first come, first served' basis.
Separately, Eskom has also applied to the National Energy Regulator of South Africa (Nersa) for permission to preserve/reserve grid capacity for the public Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) rounds so as to prevent any repeat of the failure of bid window six (BW6).
As a consequence, the bid submission deadline for BW7 was recently postponed to August 15 from May 30, a deadline that had itself been extended from the initial submission date of April 30.
RES4Africa Foundation Southern Africa project officer Mohau Nei reports that the IGCAR and Eskom's proposed Gated Generator Connection Process, which still requires Nersa approval, were also tested against the five performance indicators.
When benchmarked, the selected countries and South Africa all had strengths and weaknesses, but South Africa lagged on grid connection time, regulatory requirements, queue management, as well as communication and transparency.
The study recommends that South Africa ratifies its rules as soon as possible to provide investors with predictability.
It also recommends that best practices be integrated, including through creating online systems for grid applications and to provide real-time visibility of queuing progress.
Nei adds that the study's outcomes also point to the desirability of migrating to a clustered assessment methodology rather than case-by-case approvals so as to enable an analysis of the whole cluster's impact on the grid.
This, she says, will facilitate equal access between REIPPPP projects and private projects as well as enable Eskom to revoke capacity allocated to projects that are failing to advance to construction.

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The World Bank expects the global economy to stabilise for the first time in three years, but at a level that is still weak by historical standards.
In its latest 'Global Economic Prospects' report, the World Bank says global growth will reach 2.6% this year and 2.7% in 2025 and 2026, compared with the 3.1% average in the decade before Covid-19.
The forecast implies countries that collectively account for more than 80% of the world's population and global GDP will be growing slower than it did in the ten years before 2020.
Developing economies are expected to grow by 4% over 2024 and 2025, which is slightly lower than in 2023.
The World Bank says growth in low-income economies is expected to accelerate to 5% this year, compared with 3.8% in 2023.
However, the forecasts for this year's growth reflect downgrades in three out of every four low-income economies since January.
In advanced economies, growth is set to remain steady at 1.5% this year before. rising to 1.7% in 2025.
"Four years after the upheavals caused by the pandemic, conflicts, inflation and monetary tightening, it appears that global economic growth is steadying," says World Bank chief economist and senior VP Indermit Gill.
"However, growth is at lower levels than before 2020. Prospects for the world's poorest economies are even more worrisome. They face punishing levels of debt service, constricting trade possibilities, and costly climate events.
"Developing economies will have to find ways to encourage private investment, reduce public debt and improve education, health and basic infrastructure," Gill explains.
The poorest among them - especially the 75 countries eligible for concessional assistance from the International Development Association - will not be able to do this without international support.
This year, one in four developing economies is expected to remain poorer than it was on the eve of the pandemic in 2019.
This proportion is twice as high for countries in fragile- and conflict-affected situations.
Moreover, the income gap between developing economies and advanced economies is set to widen in nearly half of developing economies over 2020 to 2024 - the highest share since the 1990s.
World Bank reports that per capita income in these economies, which is an important indicator of living standards, is expected to grow by 3% on average through to 2026 - well below the average of 3.8% in the decade before Covid-19.
Global inflation is expected to moderate to 3.5% this year and 2.9% in 2025, but the pace of decline is slower than was projected just six months ago.
Many central banks, as a result, are expected to remain cautious in lowering interest rates.
The World Bank further reports that global interest rates are likely to remain high by the standards of recent decades, averaging about 4% over 2025 and 2026, which is nearly double the 2000 to 2019 average.
"Although food and energy prices have moderated across the world, core inflation remains relatively high, and could stay that way; that could prompt central banks in advanced economies to delay interest rate cuts," says World Bank deputy chief economist and prospects director Ayhan Kose.
Kose adds that an environment of 'higher-for-longer' rates would mean tighter global financial conditions and much weaker growth in developing economies.
PUBLIC INVESTMENT
The 'Global Economic Prospects' report also features two analytical chapters of topical importance. The first outlines how public investment can be used to accelerate private investment and promote economic growth.
It finds that public investment growth in developing economies has halved since the global financial crisis, dropping to a yearly average of 5% in the past decade.
Yet, public investment can be a powerful policy lever, World Bank states.
For developing economies with ample fis