Introduce private sector participation in ports and rail
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Individual Reform: Introduce private sector participation in ports and rail 2026 - 2027

Establish the private sector participation (PSP) unit

No data available for the deliverable: Establish the private sector participation (PSP) unit

No data available for the deliverable: Establish the private sector participation (PSP) unit

No data available for the deliverable: Establish the private sector participation (PSP) unit

No data available for the deliverable: Establish the private sector participation (PSP) unit

No data available for the deliverable: Establish the private sector participation (PSP) unit

No data available for the deliverable: Establish the private sector participation (PSP) unit

Summary

Transnet’s private sector participation (PSP) unit is operational and has moved into the procurement phase following a series of major reforms in 2025. As of November, the PSP unit - working with the new Transnet Rail Infrastructure Manager (TRIM) - has completed the initial application and adjudication process for third-party train operating companies (TOCs). Eleven private operators met the assessment criteria and have been allocated initial rail slots, spanning a total of 41 routes and six corridors, for operating periods ranging from one to ten years. TOCs with conditional awards must complete safety permits, rolling stock readiness and complementary operational requirements before commencing service, expected to ramp up through 2026.

Canvas not supported.

Is it working?

Early days. The PSP unit has successfully launched RFIs and attracted strong market interest, but the process to commercial close (actual PSP contracts) is expected to take up to 2.5 years. The real test will be in the structuring and execution of PSP deals and their impact on network performance.

Actions

1.tAn interim PSP Unit has been established as well as an agreement with the DBSA to host the unit 2.tRFIs have been issued for PSP in key corridors3.tOngoing development of bid packages and market engagement processes.

Are there plans?

The PSP unit is being capacitated to design bid windows and RFPs for priority rail and port projects. It provides transaction and procurement support to Transnet and PRASA.

RFP rolloutrnTransnet will issue its first RFP for a strategic freight corridor by in 2026. These will focus on corridor concessions and port infrastructure, informed by the freight RFI market sounding exercise completed in 2025.

Rail freight strategyrnThe RFI assessed investor appetite across three corridor groupings for bulk and container freight. The next phase will develop tailored PPP or concession models per corridor. Eleven new train operators have been approved across six corridors, expected to move 20 million tonnes a year from 2026–27 toward the 250 million-tonne target for 2029.

Passenger railrnA separate RFI issued in mid-2025 covers fare systems, depots and long-distance passenger services. Findings will inform RFPs for PRASA and Transnet passenger projects in 2026.

Regulatory milestonesrnThe Transport Economic Regulator will become operational by March 2026 to oversee tariffs, access and competition. The unbundling of the Transnet National Ports Authority will also be completed by March 2026 to enable clearer commercial and regulatory mandates. An updated Network Statement will be published by January 2026 to refine access terms for new operators.

Strategic shiftrnTransnet is moving from a modal focus to integrated corridor partnerships. The PSP unit is pursuing models including open access, corridor concessions, terminal joint ventures and asset leasing for rolling stock and port equipment.

Is it on the agenda?

Yes, the unit is referenced in cabinet documents, departmental plans and Transnet reform strategies as well as National Treasury's reform agenda for freight logistics in Operation Vulindlela phase 2.

Goals

The goal is to strengthen state capacity to design, procure and manage private sector participation (PSP) in rail and port infrastructure. The intention is for this unit to serve as a central hub for coordinating PSP projects, attracting investment and providing technical support to Transnet and Prasa.

References

Departments / Govt Institutions

Department of Transport National Treasury The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet

Summary

Transnet’s private sector participation (PSP) unit is operational and has moved into the procurement phase following a series of major reforms in 2025. As of November, the PSP unit - working with the new Transnet Rail Infrastructure Manager (TRIM) - has completed the initial application and adjudication process for third-party train operating companies (TOCs). Eleven private operators met the assessment criteria and have been allocated initial rail slots, spanning a total of 41 routes and six corridors, for operating periods ranging from one to 10 years. TOCs with conditional awards must complete safety permits, rolling stock readiness and complementary operational requirements before commencing service, expected to ramp up through 2026.

Canvas not supported.

Is it working?

Early days. The PSP unit has successfully launched RFIs and attracted strong market interest, but the process to commercial close (actual PSP contracts) is expected to take up to 2.5 years. The real test will be in the structuring and execution of PSP deals and their impact on network performance.

Actions

1.tAn interim PSP Unit has been established as well as an agreement with the DBSA to host the unit 2.tRFIs have been issued for PSP in key corridors3.tOngoing development of bid packages and market engagement processes.

Are there plans?

The PSP unit is being capacitated to design bid windows and RFPs for priority rail and port projects. It provides transaction and procurement support to Transnet and PRASA.
rn
rnRFP rollout
rnTransnet will issue its first RFP for a strategic freight corridor by in 2026. These will focus on corridor concessions and port infrastructure, informed by the freight RFI market sounding exercise completed in 2025.
rn
rnRail freight strategy
rnThe RFI assessed investor appetite across three corridor groupings for bulk and container freight. The next phase will develop tailored PPP or concession models per corridor. Eleven new train operators have been approved across six corridors, expected to move 20 million tonnes a year from 2026–27 toward the 250 million-tonne target for 2029.
rn
rnPassenger rail
rnA separate RFI issued in mid-2025 covers fare systems, depots and long-distance passenger services. Findings will inform RFPs for PRASA and Transnet passenger projects in 2026.
rn
rnRegulatory milestones
rnThe Transport Economic Regulator will become operational by March 2026 to oversee tariffs, access and competition. The unbundling of the Transnet National Ports Authority will also be completed by March 2026 to enable clearer commercial and regulatory mandates. An updated Network Statement will be published by January 2026 to refine access terms for new operators.
rn
rnStrategic shift
rnTransnet is moving from a modal focus to integrated corridor partnerships. The PSP unit is pursuing models including open access, corridor concessions, terminal joint ventures and asset leasing for rolling stock and port equipment.

Is it on the agenda?

Yes, the unit is referenced in cabinet documents, departmental plans and Transnet reform strategies as well as National Treasury's reform agenda for freight logistics in Operation Vulindlela phase 2.

Goals

The goal is to strengthen state capacity to design, procure and manage private sector participation (PSP) in rail and port infrastructure. The intention is for this unit to serve as a central hub for coordinating PSP projects, attracting investment and providing technical support to Transnet and Prasa.

References

Departments / Govt Institutions

Department of Transport National Treasury The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet

Summary

Transnet’s private sector participation (PSP) unit is operational and has moved into the procurement phase following a series of major reforms in 2025. As of November, the PSP unit - working with the new Transnet Rail Infrastructure Manager (TRIM) - has completed the initial application and adjudication process for third-party train operating companies (TOCs). Eleven private operators met the assessment criteria and have been allocated initial rail slots, spanning a total of 41 routes and six corridors, for operating periods ranging from one to 10 years. TOCs with conditional awards must complete safety permits, rolling stock readiness and complementary operational requirements before commencing service, expected to ramp up through 2026.

Canvas not supported.

Is it working?

Early days. The PSP unit has successfully launched RFIs and attracted strong market interest, but the process to commercial close (actual PSP contracts) is expected to take up to 2.5 years. The real test will be in the structuring and execution of PSP deals and their impact on network performance.

Actions

1.tAn interim PSP Unit has been established as well as an agreement with the DBSA to host the unit 2.tRFIs have been issued for PSP in key corridors3.tOngoing development of bid packages and market engagement processes.

Are there plans?

The PSP unit is being capacitated to design bid windows and RFPs for priority rail and port projects. It provides transaction and procurement support to Transnet and PRASA.
rn
rnRFP rollout
rnTransnet will issue its first RFP for a strategic freight corridor by in 2026. These will focus on corridor concessions and port infrastructure, informed by the freight RFI market sounding exercise completed in 2025.
rn
rnRail freight strategy
rnThe RFI assessed investor appetite across three corridor groupings for bulk and container freight. The next phase will develop tailored PPP or concession models per corridor. Eleven new train operators have been approved across six corridors, expected to move 20 million tonnes a year from 2026–27 toward the 250 million-tonne target for 2029.
rn
rnPassenger rail
rnA separate RFI issued in mid-2025 covers fare systems, depots and long-distance passenger services. Findings will inform RFPs for PRASA and Transnet passenger projects in 2026.
rn
rnRegulatory milestones
rnThe Transport Economic Regulator will become operational by March 2026 to oversee tariffs, access and competition. The unbundling of the Transnet National Ports Authority will also be completed by March 2026 to enable clearer commercial and regulatory mandates. An updated Network Statement will be published by January 2026 to refine access terms for new operators.
rn
rnStrategic shift
rnTransnet is moving from a modal focus to integrated corridor partnerships. The PSP unit is pursuing models including open access, corridor concessions, terminal joint ventures and asset leasing for rolling stock and port equipment.

Is it on the agenda?

Yes, the unit is referenced in cabinet documents, departmental plans and Transnet reform strategies as well as National Treasury's reform agenda for freight logistics in Operation Vulindlela phase 2.

Goals

The goal is to strengthen state capacity to design, procure and manage private sector participation (PSP) in rail and port infrastructure. The intention is for this unit to serve as a central hub for coordinating PSP projects, attracting investment and providing technical support to Transnet and Prasa.

References

Departments / Govt Institutions

Department of Transport National Treasury The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet

Analyst: Cecilia Schultz
Status: completed
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    Identify and pursue appropriate PSP models for the rail network

    No data available for the deliverable: Identify and pursue appropriate PSP models for the rail network

    No data available for the deliverable: Identify and pursue appropriate PSP models for the rail network

    No data available for the deliverable: Identify and pursue appropriate PSP models for the rail network

    No data available for the deliverable: Identify and pursue appropriate PSP models for the rail network

    No data available for the deliverable: Identify and pursue appropriate PSP models for the rail network

    Summary

    The Freight Logistics Roadmap, alongside the White Paper on National Rail Policy, explicitly embraces a mix of PSP models: open access, concessions and investment partnerships, with the aim of unlocking capital and operational expertise. Current RFIs aim to gather market input on the most viable concession models for different corridors and assets. The Pier 2 container terminal process, for instance, is under review to ensure the model supports South African priorities and enhances efficiency and transformation. This iterative approach allows for refinement based on market feedback and corridor-specific conditions.

    Canvas not supported.

    Is it working?

    Not yet fully tested. However, the process is consultative and attracting strong private sector interest. Structural bottlenecks in the PSP unit have pushed timelines to commercial close to 2.5 years, delaying operational gains to 2027–2028. Poor network conditions and required infrastructure upgrades mean private operators face high upfront costs, creating a challenging investment environment. A substantial step-up in investment is needed, but this depends on clear conditions and is clouded by Transnet’s financial distress and uncertainty around returns.

    Actions

    1.tMarket sounding exercise through RFIs to gather market intelligence on PSP models 2.tReview and revision of concession agreements 3.tPolicy frameworks and guidelines developed to support model selection and implementation.

    Are there plans?

    Yes. The PSP unit’s work programme includes model identification, market sounding (RFIs) and the development of tailored RFPs for priority corridors and assets.

    Is it on the agenda?

    Yes, PSP is central to government policy and the reform narrative and is explicitly referenced in public statements and cabinet documents.

    Goals

    The goal is to determine and implement the most effective models PSPs, including access, concessions, investment partnerships and operational contracts with PSP models tailored to local conditions, delivering value for money, efficiency and transformation.

    References

    Departments / Govt Institutions

    Department of Transport The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet

    Summary

    The Freight Logistics Roadmap, alongside the White Paper on National Rail Policy, explicitly embraces a mix of public sector participation (PSP) models: open access, concessions and investment partnerships, with the aim of unlocking capital and operational expertise. Current RFIs aim to gather market input on the most viable concession models for different corridors and assets.

    Canvas not supported.

    Is it working?

    Not yet fully tested. However, the process is consultative and attracting strong private sector interest. Structural bottlenecks in the PSP unit have pushed timelines to commercial close to 2.5 years, delaying operational gains until 2027-2028. Poor network conditions and required infrastructure upgrades mean private operators face high upfront costs, creating a challenging investment environment. A substantial step-up in investment is needed, but this depends on clear conditions and is clouded by Transnet’s financial distress and uncertainty around returns.

    Actions

    1.tMarket-sounding exercise through RFIs to gather market intelligence on PSP models2.tReview and revision of concession agreements 3.tPolicy frameworks and guidelines developed to support model selection and implementation.

    Are there plans?

    Yes. The PSP unit’s work programme includes model identification, market sounding (RFIs) and the development of tailored RFPs for priority corridors and assets.

    Is it on the agenda?

    PSP is central to government policy and the reform narrative and is explicitly referenced in public statements and cabinet documents.

    Goals

    The goal is to determine and implement the most effective models for PSPs, including access, concessions, investment partnerships and operational contracts, with PSP models tailored to local conditions, delivering value for money, efficiency and transformation.

    References

    Departments / Govt Institutions

    Department of Transport The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet

    Summary

    The Freight Logistics Roadmap, alongside the White Paper on National Rail Policy, explicitly embraces a mix of public sector participation (PSP) models: open access, concessions and investment partnerships, with the aim of unlocking capital and operational expertise. Current RFIs aim to gather market input on the most viable concession models for different corridors and assets.

    Canvas not supported.

    Is it working?

    Not yet fully tested. However, the process is consultative and attracting strong private sector interest. Structural bottlenecks in the PSP unit have pushed timelines to commercial close to 2.5 years, delaying operational gains until 2027-2028. Poor network conditions and required infrastructure upgrades mean private operators face high upfront costs, creating a challenging investment environment. A substantial step-up in investment is needed, but this depends on clear conditions and is clouded by Transnet’s financial distress and uncertainty around returns.

    Actions

    1.tMarket-sounding exercise through RFIs to gather market intelligence on PSP models2.tReview and revision of concession agreements 3.tPolicy frameworks and guidelines developed to support model selection and implementation.

    Are there plans?

    Yes. The PSP unit’s work programme includes model identification, market sounding (RFIs) and the development of tailored RFPs for priority corridors and assets.

    Is it on the agenda?

    PSP is central to government policy and the reform narrative and is explicitly referenced in public statements and cabinet documents.

    Goals

    The goal is to determine and implement the most effective models for PSPs, including access, concessions, investment partnerships and operational contracts, with PSP models tailored to local conditions, delivering value for money, efficiency and transformation.

    References

    Departments / Govt Institutions

    Department of Transport The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet

    Summary

    The Freight Logistics Roadmap, alongside the White Paper on National Rail Policy, explicitly embraces a mix of public sector participation (PSP) models: open access, concessions and investment partnerships, with the aim of unlocking capital and operational expertise. Current RFIs aim to gather market input on the most viable concession models for different corridors and assets.

    Canvas not supported.

    Is it working?

    Not yet fully tested. However, the process is consultative and attracting strong private sector interest. Structural bottlenecks in the PSP unit have pushed timelines to commercial close to 2.5 years, delaying operational gains until 2027-2028. Poor network conditions and required infrastructure upgrades mean private operators face high upfront costs, creating a challenging investment environment. A substantial step-up in investment is needed, but this depends on clear conditions and is clouded by Transnet’s financial distress and uncertainty around returns.

    Actions

    1.tMarket-sounding exercise through RFIs to gather market intelligence on PSP models2.tReview and revision of concession agreements 3.tPolicy frameworks and guidelines developed to support model selection and implementation.

    Are there plans?

    Yes. The PSP unit’s work programme includes model identification, market sounding (RFIs) and the development of tailored RFPs for priority corridors and assets.

    Is it on the agenda?

    PSP is central to government policy and the reform narrative and is explicitly referenced in public statements and cabinet documents.

    Goals

    The goal is to determine and implement the most effective models for PSPs, including access, concessions, investment partnerships and operational contracts, with PSP models tailored to local conditions, delivering value for money, efficiency and transformation.

    References

    Departments / Govt Institutions

    Department of Transport The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet

    Analyst: Cecilia Schultz
    Status: in-progress
    Last Updated:
    Next Update:
    Got an Update? Follow this reform
    Reform Area:
    Reform:

      If you would like to alert our analysts to an update you are aware of in this particular reform area, please complete the form below and submit it to us. Please ensure you include links to any press releases or other documents to confirm the reforms and provide detail to allow our analysts to assess the changes. Our team will review it.