It was part of the South African Railways and Harbours Administration, a state-controlled organisation that employed hundreds of thousands of people for decades from the first half of the 20th century and was widely referred to by the initials SAR&H (SAS&H in Afrikaans).

The initial network was created to serve the agricultural production area between Cape Town and Wellington.

The news that there were gold deposits in the Transvaal Republic moved the Cape Colony Government (supported by British Government) to link Kimberley as soon as possible by rail to Cape Town as part of the colonial dream.

The company comprises several businesses: Transnet also formerly owned Shosholoza Meyl, the non-luxury long-distance passenger rail service.

Shosholoza Meyl was transferred to the Passenger Rail Agency of South Africa on 23 December 2008.