Currently, South Africa is undergoing a rail renaissance. Recently, very major contracts have been issued for both freight and passenger rolling stock. In addition, the country's rail infrastructure is being extensively upgraded.

 

As part of this renewed importance of rail, the South African government has launched a drive to move freight transported on road onto rail.

 

South Africa's automotive industry is a significant contributor to the country's GDP. In terms of foreign revenue, the National Association of Automobile Manufacturers of South Africa – NAAMSA – states that in 2012, automotive exports made up 12.1% of South Africa’s total exports. In 2012, R86,9 billion in vehicles and components was shipped to 152 countries around the globe, while in 2011, South Africa’s automotive sector produced revenue of R3.22 billion.

 

Much of this was being transported from inland manufacturing plants to ports by road. At the same time, the national rail freight transporter Transnet was faced with rail car carrier wagons that were obsolete. These were not able to accommodate newer vehicle profiles and their open sides exposed new vehicles to fouling, pilferage and vandalism.