Why Transnet Is Established In South Africa

South Africa’s state railway system began when the two pioneer railway systems situated in the Cape and Natal became government property in 1872 and 1877 respectively, thus completing the relatively primitive harbours in Durban and Cape Town. Scarcely nine years after the founding of the government railways, both which were rapidly pushed to Kimberly, rumours of massive gold deposits in the Transvaal Republic were confirmed. Almost overnight, economic power had shifted from the colonial south to the republican north.

In 1910 Union was achieved, with the country’s leaders adamant that the railways and harbours should be used to unify and develop South Africa’s economy. The result – the South African Railways and Harbours administration (SAR&H) becoming a proud established arm of the government.

A mere 20 years after the establishment of Union, in 1930, South Africa had established itself as a proud and mobile nation. This achievement can be accredited to the opening of efficient mainline passenger links and an impressive network of urban and metropolitan train services.

During the 1970s it was agreed upon by the government that the SAR&H should restructure itself along defined business lines. Integral to the process was a change in the name and image of the organisation, which would appropriately reflect its new vision and mission as a successful state business enterprise. In 1981, the country’s railway, harbour, road transport, aviation and pipeline operations became known as South African Transport Services (SATS). At the same time, the enterprise was restructured into units and divisions,
with a strong emphasis on localized management.

By the end of 1989, the goal of managing SATS as a private entity was well within reach, and on 1 April 1990, after 80 years of government and parliamentary control, SATS was given company status. A new, limited liability company, representing a vast transport network, was finally born. Its name was Transnet SOC Ltd.

Since 1994, Transnet has kept pace with a fast-changing society, dealing with a multitude of challenges in an emerging democracy. Transnet, realising these challenges, has met them head-on by investing heavily in infrastructure and integrating and coordinating programmes within the country.

The South African transport system has come a long way from its humble beginnings in the 1800s. This can be attributed to Transnet playing a vital role not only in everyday life, but in the national economy and economics of several other African states that use the networks and harbours within South African to transfer their imports and exports.​