The Western Cape Government has released the first findings of its Overberg Rail Business Case, setting out plans to transform the region’s rail infrastructure into a modern freight corridor linking the Overberg with major inland markets, including Gauteng.
The findings were presented during a high-level stakeholder feedback session held in Bredasdorp on Friday.
The business case proposes the development of an integrated intermodal freight system connecting Transnet-operated rail infrastructure, the Belcon Inland Terminal and the Port of Cape Town. The aim is to streamline the movement of agricultural and bulk commodities to both domestic and export markets.
In July last year, Western Cape Mobility Minister Isaac Sileku announced the launch of the Overberg Rail Business Case to freight stakeholders, saying the province’s rail heritage had long been underutilised. The latest report positions rail revitalisation as a key component of the province’s broader economic and transport strategy.
According to the findings, the corridor has the potential to move about 105 000 tons of freight annually between the Western Cape and Gauteng. It also projects the movement of around 2 000 refrigerated containers per year through the corridor.
Commodities expected to benefit include barley, wheat, canola, animal feed and fertiliser. The model also provides for backloading opportunities from inland markets, which stakeholders said would improve efficiency and cost-effectiveness.
The provincial government said shifting freight from road to rail could enhance supply chain reliability, lower logistics costs and ease pressure on provincial road infrastructure.
“This Business Case positions the Overberg rail corridor as a key enabler to triple Western Cape exports by 2035. By unlocking dormant rail capacity, strengthening intermodal links, and attracting private investment, we are building a freight system that drives economic growth, supports producers, and reduces road congestion,” Sileku said.
Executive mayor of the Overberg District Municipality, Sakkie Franken said the municipality supported the initiative.
“The revitalisation of the rail corridor will strengthen supply chain reliability, reduce pressure on our roads, and improve the competitiveness of Overberg producers in both domestic and export markets. As the Overberg District Municipality, we support this collaborative initiative and remain committed to working with provincial and national partners to ensure the successful implementation of a modern, integrated freight system that drives sustainable economic growth,” he said.
Sileku said the business case aligns with freight rail reforms announced by the national Minister of Transport, aimed at opening underutilised branch lines to third-party participation.
“These reforms create a historic opportunity to unlock dormant rail capacity and attract investment into regional corridors such as the Overberg. As the Western Cape Government, we are positioning ourselves at the forefront of this reform process by developing credible, evidence-based projects that enable private sector participation, strengthen intermodal integration, and restore rail as the backbone of our freight system,” he said.
Stakeholders at the session stressed the importance of partnerships between government, industry and rail operators to secure long-term freight commitments and provide investment certainty.
The next phase of the project will focus on finalising the implementation plan, addressing infrastructure requirements and strengthening collaboration with industry partners. The Overberg Rail Business Case pilot is expected to provide insights to guide future freight rail revitalisation efforts across the province.
Cape Argus
Staff Reporter
iol.co.za