Traxtion will import 46 diesel‑electric locomotives from KiwiRail as part of a R3.4 billion (C$278 million) rolling stock investment aimed at boosting South Africa’s freight capacity.
The programme allocates R1.8 billion (C$147 million) to locomotives and R1.6 billion (C$131 million) to wagons.
Traxtion plans to overhaul and deploy the fleet on South Africa’s mainline network as private access expands. The locomotives include 42 U26C units to be modernised and four C30‑8MMI units to be fully modernised.
Private capital aligns with rail reform
The rail company says the investment targets at least 662 direct jobs during build and deployment and a minimum 60 percent local content across the programme. Executives expect the added fleet to address roughly 5 percent of the national freight rail capacity shortfall.
“All locomotive upgrade work will take place at Traxtion’s Rail Services Hub in Rosslyn, anchoring local manufacturing and supplier participation,” said James Holley.
Traxtion will collaborate with Wabtec to fit fuel‑efficient 7FDL‑EFI engines and Brightstar control systems on the U26C units, improving reliability and performance. The overhaul plan centres on domestic supplier development and skills transfer.
South Africa has opened the Transnet network to private operators, a shift intended to add capacity and improve reliability on key freight corridors. The adjudication named 11 prospective train operating companies with access to slots across 41 routes and six corridors.
Government expects new entrants to lift annual rail volumes from the 2026 to 2027 financial year. This policy move underpins private rolling stock orders now arriving in the market. The opening followed August 2025 announcements that opened the Transnet network to private operators.
Deployment targets 2026 network entry
Traxtion says the locomotives will be shipped in four tranches between April 2026 and August 2027. Each batch will run through a four‑month modernisation cycle covering engine swaps, control systems, major servicing and repainting.
The first refurbished units are expected to enter service on South Africa’s mainline network in the third quarter of 2026. “Private capital flows when the government policies create confidence in the private sector to invest,” said James Holley. Traxtion frames the order as a bridge to scale up freight moved by rail while reforms continue to settle.