Transport Minister Barbara Creecy has committed R8.9 billion to restore the iron ore railway line between Sishen and Saldanha. The money will be spent under a programme that runs until 2030.
The 861 km line links the Sishen iron ore mines in the Northern Cape to the Port of Saldanha in the Western Cape. It is seen as one of the country’s most important freight lines.
“Some of that money comes from Transnet’s revenue and own income,” Creecy said. “R3.4 billion comes from the Budget Facility for Infrastructure from the National Treasury.”
Creecy visited the line near Upington on Monday, 12 October 2026. The line is in its yearly maintenance shutdown, which runs from 6 to 16 October.
During the visit, she outlined the Ore Line Restoration Programme. It is run by the Transnet Rail Infrastructure Manager, known as TRIM.
“This year, TRIM is investing R2.2 billion in this restorative maintenance. R1.5 billion of that comes from the Budget Facility for Infrastructure,” she said.
Creecy said a further R1.4 billion would be spent on the trains that run on the line. She said the money would be split equally between locomotives and wagons.
About 45,000 sleepers are set to be replaced during the 10-day shutdown. No trains will run on the line in this time.
According to Creecy, the shutdown created 1,300 fixed-term jobs. It also created 600 indirect work opportunities through the service providers involved.
She said about one third of the R2.2 billion maintenance budget would go to local suppliers and businesses for goods and services.
The government wants to move 250 million tonnes of freight by rail each year by 2029. Creecy said the spending on the Sishen line fits with this goal.
Work is also taking place at the Port of Saldanha, where the line ends. The Transnet National Ports Authority, or TNPA, runs the port.
“TNPA has commissioned a bulk power upgrade at the Port of Saldanha, and is spending R750 million on upgrading the power,” Creecy said.
She said the extra power would allow the port to install a third tippler. This machine will support higher export volumes, she said.
The Port of Saldanha is the largest iron ore export hub in Africa. Its iron ore terminal can handle more than 60 million tonnes.
The terminal is also closed for maintenance from 6 to 21 October. Planned upgrades include cargo handling equipment and dust control systems.
The TNPA has signed a 25-year lease with Freeport Saldanha. The TNPA said the deal would open the way for planned investments worth R6.9 billion.
The lease covers 55 hectares of land in the port’s Southern Precinct. Saldanha is the deepest natural port in the Southern Hemisphere.
Freeport Saldanha is South Africa’s first and only sector-specific freeport. It is also a port-based Special Economic Zone.
Western Cape provincial legislator Noko Masipa said the lease would grow business in green hydrogen, marine engineering, logistics and offshore services.
“When public institutions facilitate private enterprise rather than standing in its way, real economic growth follows,” Masipa said.
The Sishen to Saldanha line was built by Iscor and opened in 1976. Transnet Freight Rail took it over the following year and has run it since then.
Source: this article is based on reporting by Daily Investor. Image: Daily Investor. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.