No data available for the deliverable: Establish the private sector participation( PSP) unit
Summary
The PSP Unit was mandated by the Rail Private Sector Participation Framework adopted by Cabinet in December 2023. An interim unit has been established and is currently hosted by the DBSA, with a permanent arrangement being finalised. The unit has issued RFIs for opportunities in five priority rail and port corridors in March 2025. These will serve as inputs for RFPs to be issued in August 2025.
View DetailsIs 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 corridors 3.tOngoing development of bid packages and market engagement processes.
Are there plans?
Yes. The PSP unit has a clear mandate, a hosting agreement with DBSA and a published work programme, including the RFI and upcoming RFP processes.
Is it on the agenda?
Yes, the unit is referenced in cabinet documents, departmental plans and public statements by the transport minister and business leaders.
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
The PSP Unit was mandated by the Rail Private Sector Participation Framework adopted by Cabinet in December 2023. An interim unit has been established and is currently hosted by the DBSA, with a permanent arrangement being finalised. The unit has issued RFIs for opportunities in five priority rail and port corridors in March 2025. These will serve as inputs for RFPs to be issued in August 2025.
View DetailsIs 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 corridors 3.tOngoing development of bid packages and market engagement processes.
Are there plans?
Yes. The PSP unit has a clear mandate, a hosting agreement with DBSA and a published work programme, including the RFI and upcoming RFP processes.
Is it on the agenda?
Yes, the unit is referenced in cabinet documents, departmental plans and public statements by the transport minister and business leaders.
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
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: 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.
View DetailsIs 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 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.
View DetailsIs 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
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