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Rebuilding South Africa’s rail and port infrastructure is key for the country to be able to move bulk commodities like coal and iron ore South Africa’s Transport Minister Barbara Creecy has launched a Request for Information (RFI) aimed at securing private sector participation to rehabilitate South Africa’s rail and port infrastructure, with a particular focus on transporting critical minerals and coal. Speaking at a media briefing on Sunday, Creecy said the initiative is part of the government’s broader effort to address the decline of key freight corridors and enhance the efficiency of mineral exports. The RFI specifically focuses on key rail corridors essential for South Africa’s coal and mineral exports. These include: The Northern Cape to Saldanha corridor, which facilitates the transportation of iron ore and manganese, and The Limpopo and Mpumalanga to Richards Bay routes, critical for coal and chrome exports. Creecy emphasised that the deterioration of rail infrastructure, alongside theft, vandalism and under-investment, has severely hindered South Africa’s ability to move bulk commodities efficiently. The government’s inability to fund major infrastructure upgrades alone has prompted this engagement with the private sector. “The limited availability of State resources to fund infrastructure development and address backlogs has intensified these challenges, severely restricting the ability of State-Owned Entities (SOEs) to fulfil their critical mandates,” she said. Private sector interest to improve rail network The Minister said Transnet and the Department of Transport have received numerous unsolicited proposals from private sector players offering investment, skills and expertise to restore and reform the country’s rail and port logistics, she said. “The overwhelming interest has made it clear that we must conduct broad and inclusive market research before issuing formal requests for proposals in August this year,” said Creecy. She clarified that the RFI is not a formal procurement process but rather a way to gather critical market insights. This project encompasses the port, container and automotive port terminals, as well as back-of-port arrangements and railway and inland terminals. It will also address the corridors connecting Gauteng and KwaZulu-Natal (Durban), Gauteng and Eastern Cape (East London, Port Elizabeth and Ngqura), and Gauteng and Western Cape (Cape Town). Government’s commitment and industry engagement Creecy stressed that the government is committed to job retention, state asset ownership and localisation, while also ensuring compliance with Broad-Based Black Economic Empowerment (BBBEE) and gender equality policies. A dedicated Private Sector Participation (PSP) unit, hosted by the Development Bank of South Africa, will oversee the process. The eight-week online consultation, running from 24 March to 9 May 2025, aims to solicit input from key industry players before formal proposals are invited. “The RFI represents a pivotal step in building a 21st-century transport system that strengthens industrial competitiveness, deepens regional integration and drives inclusive economic growth,” Creecy said. A second RFI, focusing on passenger rail initiatives, is expected to be launched in May. Stakeholders have been encouraged by the Department to participate via its online portal at www.psp-rfi.co.za, with all submissions to be treated confidentially. |
