Operation Vulindlela is reviving SA’s coal export corridor

Clarence Tshitereke South Africa’s logistics system, long constrained by state monopoly structures and deteriorating infrastructure, has reached a decisive reform moment.

At the centre is Operation Vulindlela, the joint government-business initiative established to accelerate priority structural reforms, including the unbundling of Transnet and the introduction of private sector participation across strategic freight corridors.

Open-access rail reforms and tariff determinations are beginning to ease network constraints.

The clearest evidence now appears not only in government reporting, but also in the operational disclosures of South Africa’s major bulk commodity exporters.

For years, South African freight rail was dominated by vertical integration within Transnet Freight Rail (TFR), which controlled both infrastructure and train operations.

This model contributed to underinvestment, operational inefficiencies, and declining performance on key trade corridors, particularly the North Corridor serving Richards Bay Coal Terminal (RBCT).

Operation Vulindlela’s response has been to support an open-access framework, separate Transnet’s infrastructure and operating functions, and work with the Interim Rail Economic Regulator on equitable access tariffs.

The objective is to lower entry barriers, enable private train operating companies and allocate scarce corridor capacity more efficiently.

Thungela Resources’ latest six-month interim performance illustrates the early commercial impact.

Export equity sales rose 6% to 8.5 million tonnes, adjusted EBITDA increased by 91% and headline earnings per share rose by 150%, enabling the board to nearly treble its interim dividend to R5.50 per share. state-led reform, market liberalisation, and improved rail access are translating into stronger export performance through the RBCT.

These gains are significant because they reflect not only internal asset productivity but also improved logistics capacity on the corridor to RBCT.

Thungela attributed part of its expansion to stronger TFR capacity utilisation, which allowed producers to move larger volumes by rail, ease mine-gate bottlenecks and lift export throughput.

The broader rail reform agenda also demonstrates the value of a more contestable market.

Under milestones tracked by Operation Vulindlela, the allocation of slots to 11 private operators across 41 strategic routes has begun to reduce dependence on a single overburdened operator.