Private Sector Shows Strong Interest in Rail and Port Overhaul, Says Govt

The portal recorded more than 11,600 visits, reflecting keen national and international interest in investing in the country’s freight transport corridors.

The Department of Transport has received a resounding response to its call for private sector involvement in South Africa’s struggling rail and port infrastructure. A total of 162 formal responses were submitted under the recent Request for Information (RFI) process, aimed at exploring Private Sector Participation (PSP) in freight corridors vital to the country’s economy.

This initiative is a critical part of the government’s broader strategy to revitalize and modernize South Africa’s transport and logistics network, long plagued by underinvestment, theft, vandalism, and operational inefficiencies.

Overwhelming Private Sector Response

The RFI was launched in March 2025 by the newly appointed Minister of Transport, Barbara Creecy, through an online portal that remained active for just over two months, from 24 March until its extended deadline of 30 May. The portal recorded more than 11,600 visits, reflecting keen national and international interest in investing in the country’s freight transport corridors.

Of the 162 submissions received:

• 51 responses focused on the iron ore and manganese corridors.

• 48 responses targeted the coal and chrome corridors.

• 63 responses addressed the container and automotive intermodal corridors.

These responses are now being reviewed by the Department of Transport and Transnet, with all submissions treated with confidentiality and used exclusively to inform the next steps in the PSP project rollout.

“The overwhelming interest from the private sector underscores a shared recognition of the urgent need to reform South Africa’s logistics infrastructure and the appetite to collaborate with government in achieving this,” the department stated.

Why Rail and Ports Matter

South Africa’s rail and port infrastructure is critical for bulk mineral exports, import-export trade, and automotive logistics. However, performance across these networks has deteriorated sharply over the past decade. Frequent disruptions, poor maintenance, logistical bottlenecks, and theft have diminished capacity, undermining trade competitiveness and placing additional pressure on road networks.

Minister Creecy noted in March that the state’s limited financial capacity is a core barrier to infrastructure revitalization. This has prompted the government to actively seek private capital, technical skills, and operational partnerships to accelerate turnaround efforts in the sector.

“There is a widespread understanding that without private sector participation, many of these infrastructure challenges cannot be resolved within a reasonable timeframe,” the department said.

A Corridor-Based Approach

The RFI process was divided into three key freight corridors, each selected for its economic importance:

1. Northern Cape to Saldanha and Nelson Mandela Bay Corridors Focus: Iron ore and manganese exports. These corridors serve key mining regions and export hubs including Saldanha Bay and Port Elizabeth.

2. Limpopo & Mpumalanga to Richards Bay Corridor Focus: Coal and chrome exports. This corridor includes coal operations in Lephalale (Limpopo), Mpumalanga, and KwaZulu-Natal, and chrome operations in the Rustenburg-Brits region.

3. Intermodal Supply Chain Corridors Focus: Containerized and automotive logistics. This corridor links Gauteng with major ports such as Durban, Cape Town, East London, Port Elizabeth, and Ngqura, which are crucial for automotive exports and import trade.

Looking Ahead: Passenger Rail to Follow

Encouraged by the strong response, the Department of Transport confirmed that a second RFI phase will be launched in July 2025, specifically targeting passenger rail initiatives. These projects are expected to address the urgent need for safe, affordable, and efficient public transportation in urban and regional areas.

While no specific timelines have been provided for the commencement of Requests for Proposals (RFPs), the department has assured stakeholders that it is now in the assessment phase and will soon begin designing procurement strategies informed by the RFI outcomes.

“The RFI is a critical step toward developing PSP projects that are viable, competitive, and aligned with South Africa’s long-term economic objectives,” the department emphasized.

Government Support and Guarantees

To support the broader reform agenda, government recently approved a R51 billion guarantee facility for Transnet, intended to stabilize the state-owned logistics operator and enhance its ability to attract credible partners. This facility is expected to complement PSP projects by ensuring that Transnet has the liquidity and institutional support to deliver on its mandate.

The department reiterated that any further announcements regarding procurement programmes or formal bids will be made following the completion of its internal evaluations and consultations with relevant authorities.

A New Model for Infrastructure Delivery

This wave of private sector interest represents a potentially transformative moment in South Africa’s approach to infrastructure delivery. By shifting toward collaborative public-private partnerships, the government hopes to unlock investment, reduce fiscal strain, and deliver long-overdue improvements to freight and passenger transport systems.

The Department of Transport has assured stakeholders—including investors, communities, and transport operators—that the PSP programme will be implemented transparently and with consideration of socio-economic outcomes such as job creation, skills development, broad-based black economic empowerment, and regional integration.

“The future of South Africa’s transport system lies in smart partnerships that harness innovation, improve performance, and ensure that infrastructure works for the people,” Minister Creecy said.