The Western Cape government has officially launched the Overberg Freight Rail Business Case and Implementation Plan pilot project, marking a major step in revitalising freight rail infrastructure across the province. The project was unveiled by Western Cape Mobility Minister Isaac Sileku in Bredasdorp and is set to transform one of the province’s most critical agricultural corridors.
Designed in partnership with farmers, logistics operators, freight owners, investors, and public sector stakeholders, the initiative aims to reconnect the agricultural hub of Caledon to the Bellville Container Terminal and the Port of Cape Town. Currently, the corridor sees 8.9 million tonnes of freight annually, with only 0.2% moved by rail and the rest by road.
Components of the project
“The Overberg Freight Rail Business Case is about bringing freight rail back on track and creating a commercially viable, data-driven freight system that cuts logistics costs, reduces congestion on the N2, and positions the Western Cape to triple its export value by 2035,” said Minister Sileku.
Overberg District Mayor Sakkie Franken emphasised the broader socio-economic impact of the initiative, calling it a “turning point” that could boost investment, job creation, and regional development.
Key components of the pilot project include: Shifting at least 10% of freight (900,000 tonnes annually) from road to rail, reducing truck traffic on the N2 by approximately 40,000 trips per year, cutting logistics costs for exporters by up to 30%, lowering carbon emissions by up to 70% per tonne of freight, encouraging public-private partnerships for funding and operations, assessing the feasibility of closing a 60km rail gap between Protem and Swellendam.
The pilot, set to run through June 2026, will focus on freight volume validation, infrastructure assessment, and stakeholder engagement. If proven viable, phased construction and operations are expected to commence in late 2026, with full launch projected by 2028. The project is also expected to serve as a blueprint for similar rail-led freight solutions across the Western Cape.