tHis launch marks a pivotal milestone in the government's efforts to work with the private sector to reopen legitimate locations for our rail network and ports to promote trade and economic growth.
Roadmap for South Africa's freight logistics system It makes clear that strategic infrastructure, such as railways and ports, remains public ownership as assets belonging to the people of South Africa.
At the same time, it paves the way for greater competition in rail and port terminal operations, attracting private investment and improving infrastructure to world-class standards. In this context, I believe that the efficiency of logistics systems is essential for the functioning of all economies.
Today I am launching an Online Request for Information (RFI) to develop an enablement environment for strengthening private sector participation and investment in rail and port infrastructure and operations.
As you know, South Africa's railway and port infrastructure faces major challenges, including poor performance. Theft and vandalism; lack of investment and operational inefficiency. All of these hinders trade and economic growth.
The limited availability of state resources to address infrastructure development and backlogs has strengthened these challenges and severely restricted the ability of state-owned enterprises to meet key mandates.
Along with TransNet, the government has received many unsolicited proposals from the private sector, providing investment, skills and expertise to support rehabilitation and reform of our struggling railway and port systems.
This overwhelming interest has made it clear that the sector and transnet must engage in a broad and comprehensive market engagement before issuing a proposal request (RFP) this August. These are not formal procurement processes themselves, but mechanisms for understanding and procuring information from the market.
To ensure that these RFPs are fully responded, our solutions are effective and sustainable, as governments recognize the importance of understanding the cargo logistics landscape through the perspectives of interests and affected parties.
In this early stage of private sector participation, RFI focuses on the next corridor.
- From the Northern Cape, primarily for the export of iron ore and manganese, to the Sardan Havalk Mineral Corridor, and to the Nelson Mandela Bay Corridor, primarily for the export of manganese.
This includes the full pit-to-port rails, ports, terminal infrastructure and equipment supporting the transport of iron ore from the large Siegen Postmasburg area mines to the Sardanha port, as well as the movement of manganese to the port from the mine between Hotazel ​​and Postmasburg to the port of Saldana, to the port of Port Elizabeth and ng.
arrangement.
- Projects for coal and chromium exports for Richards Bay Bulk Mineral Corridor PSP Projects from Limpopo and Mpumalanga include the provision of magnetite exports at the port.
This includes complete port-to-port rail, port and terminal infrastructure and equipment that supports coal exports from Limpopo's Refaral mines. Chromium exports from the “Western Limb” mine in the Rustenburg Britt region of the northwest. Coal exports from various mines in Mpumalanga and KwaZulu-Natal to Richards Bay Port. Special attention is paid to Bayview precincts where non-RBCT coal, chromium and magnetite are processed through dry bulk and multipurpose terminals and the rear of the port arrangement.
- The Intermodal Supply Chain PSP Project focuses on the container and automotive sector, including the potential designation of South Africa's container port systems as regional transship hubs for major transport lines.
This includes ports, containers, automotive port terminals, port of port arrangements, and Gauteng rail and inland terminals. Includes the Garten – Durbanport (KZN), Gauten – Eastern Cape (East London, Port Elizabeth, Nugra), and Gauten – Western Cape (Cape Town) corridor.
The RFI represents an incredible step in our shared commitment to building a 21st century transport system that transcends mobility to enhance industry competitiveness, deepen regional integration and promote inclusive economic growth.
This will clarify the challenge in a structured and consistent way, clearly defining scope, context and impact, informing the development of intensive, strategic and sustainable solutions. In this regard, the DOT ensures that the views of various other stakeholders are brought into deliberations, including organised labor.
Acceptance of participating sectors in the private sector
In line with the private sector participation envisaged in the National Railway Policy whitepaper, the Cabinet approved the PSP framework in 2023 to guide private sector engagement across the value chain of the logistics sector. This framework mandates the Department of Transport (DOT) to enhance state capacity and establish dedicated PSP units to support transnets and PRASA in the procurement of potential PSP projects.
The division is in the final stages of closing the memorandum of understanding between South Africa's Development Bank (DBSA) and government bonds, appointing DBSA as the unit's hosting agency.
A temporary PSP unit has been installed within the department. It consists of a team with extensive expertise in structuring PSP contracts and procurement.
In collaboration with TransNet, the interim PSP unit developed rail freight and port RFI.
What happens next in the RFI phase?
As RFI is part of the research and consultation process, all submitted information will be treated with strict confidentiality and will only be used to inform the development of potential PSP projects. Participation in RFI offers valuable opportunities to help shape future initiatives.
The RFI must be completed online and can be accessed directly from the Ministry of Transport website or at www.psp-rfi.co.za. The portal will be open for eight weeks from March 24th to May 9th, 2025.
The submitted responses will be reviewed and feedback will be provided.
Following the conclusion of the RFI phase, a proposal request (RFP) is made through the PSP unit. PSP Units and Transnet will develop a PSP programme that will be in line with the policy that will enter the official procurement phase from the end of August 2025.
This work is based on the following principles:
- Reform Transnet according to the Cabinet approved roadmap for cargo logistics.
- It ensured a fair transition to reformed railway and port logistics systems, prioritizing maximum job retention for TransNet and Prasa employees, and set up a collaborative stream of work to consult organized labor as the process unfolds in this regard.
- Protects immobilized assets by maintaining state ownership for future generations and preventing the Vulcanization of railway and port systems that occur in other countries.
- It actively promotes localization, industrialization and support of key sectors such as steel production and local rail manufacturing.
- We demonstrate our commitment to broad Black economic empowerment and gender equality by providing strong support to new and start-ups in the rail and port sector, including SMEs.
lastly
I would recommend that all interested parties be actively involved in this RFI process. This will contribute to the PSP Unit's efforts in designing future bid packages for the formation and procurement of the project's potential PSP program.
In May 2025, the division will release a second batch of RFI. RFI can achieve more with a focus on passenger rail initiatives.
