The department of transport plans to issue a request for information (RFI) for private sector participation in the passenger rail network in June, minister Barbara Creecy has announced.
This would be used by the Passenger Rail Agency of SA (Prasa) to issue a request for proposals in October and would include areas such as signalling, depots and rolling stock as well as high-speed rail corridors, the minister said in a speech at the Rand Merchant Bank Think Summit.
This initiative follows the request the RFIs on the five key rail and port corridors in the rail and port freight logistics sector. This information will be used by Transnet for requests for proposals, which Creecy said would be issued by August.
Both initiatives are aimed at introducing private sector participation in the national rail network. Creecy acknowledged that the freight logistics sector had been underperforming with serious negative implications for the economy and its citizens.
“Business Day recently estimated these inefficiencies cost the economy as much as R1bn a day,” she said.
Another significant development over the last six months was the release by the department of the Transnet Network Statement and Rail Access Tariffs for 2024/5.
“Work is currently under way to publish the Network Statement and Rail Access Tariffs for 2025/26 for our rail industry. I like to call this important document a menu and a price list for third-party operators interested to do business on our key freight corridors,” the minister said.
To address regulatory challenges, an Interim Rail Economic Regulatory Capacity (IRERC) had been established, which would later form part of the new institution, the Transport Economic Regulator.
“The IRERC aims to create fairness and transparency for third-party operators, improve network utilisation, increase competition, and reduce costs. This process includes frameworks for network access, determination of the tariff methodology, service levels and a contractual framework.
“The vertical separation of Transnet and the appointment of a manager has been a critical step to facilitate transparent implementation of third-party access. As of October 1 2024, Transnet Rail Infrastructure Manager (TRIM) is operating independently from Transnet Freight Rail."
Creecy said trade, industry and competition minister Parks Tau’s recent decision to issue a block exemption for the rail and ports industry from sections of the Competition Act that prohibit agreements between competitors, would allow companies to collaborate on procurement and sharing of the services for improvements in port and rail.
“This opens the way for short- and long-term investment in rail infrastructure,” she said.
Transnet would put in bids to the budget facility for infrastructure at the Treasury for maintenance and refurbishment of the network and selected terminals.
Creecy noted that joint initiatives between the government and business had managed to increase freight volumes to 161-million tonnes per annum in March 2025, an improvement on past performance but a long way from the 2030 target of 220-million tonnes.
As part of Transnet’s recovery plan, replacement and refurbishment of critical equipment such as cranes, RTGs, straddles, and haulers was taking place in the country’s ports.
Last week Transnet issued a R17bn concession contract to five private sector partners to fund, construct and operate several liquid bulk terminals at the Port of Richards Bay.
In Richards Bay the port and municipality had established a truck holding facility that had moved trucks from the N2 and port access roads, to address congestion.
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