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
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. An interim PSP Unit has been established as well as an agreement with the DBSA to host the unit 2. RFIs have been issued for PSP in key corridors 3. Ongoing 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
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.
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. An interim PSP Unit has been established as well as an agreement with the DBSA to host the unit
2. RFIs have been issued for PSP in key corridors
3. Ongoing 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 rollout
Transnet 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 strategy
The 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 rail
A 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 milestones
The 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 shift
Transnet 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.
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. An interim PSP Unit has been established as well as an agreement with the DBSA to host the unit
2. RFIs have been issued for PSP in key corridors
3. Ongoing 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 rollout
Transnet 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 strategy
The 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 rail
A 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 milestones
The 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 shift
Transnet 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.
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. An interim PSP Unit has been established as well as an agreement with the DBSA to host the unit
2. RFIs have been issued for PSP in key corridors
3. Ongoing 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 rollout
Transnet 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 strategy
The 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 rail
A 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 milestones
The 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 shift
Transnet 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.
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. An interim PSP Unit has been established as well as an agreement with the DBSA to host the unit
2. RFIs have been issued for PSP in key corridors
3. Ongoing 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 rollout
Transnet 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 strategy
The 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 rail
A 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 milestones
The 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 shift
Transnet 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.
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. An interim PSP Unit has been established as well as an agreement with the DBSA to host the unit
2. RFIs have been issued for PSP in key corridors
3. Ongoing 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 rollout
Transnet 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 strategy
The 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 rail
A 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 milestones
The 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 shift
Transnet 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
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.
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. Market sounding exercise through RFIs to gather market intelligence on PSP models 2. Review and revision of concession agreements 3. Policy 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.
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 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. Market-sounding exercise through RFIs to gather market intelligence on PSP models
2. Review and revision of concession agreements
3. Policy 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.
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 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. Market-sounding exercise through RFIs to gather market intelligence on PSP models
2. Review and revision of concession agreements
3. Policy 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 pblic sector participation (PSP) models (open access, concessions and investment partnerships), with the aim of unlocking capital and operational expertise. In March 2025, the Department of Transport launched requests for information (RFI) on key corridors to gather market input on the most viable concession models for different corridors and assets. Since then, several transactions are now in market or concluded.
While this is welcomed, there are several concerns arising from recently released RFPs: Transnet is designing and running PSP processes internally without independent oversight, and released transaction terms – notably the Richards Bay Dry Bulk RFQ – push disproportionate risk onto private partners with no volume protection or pre-defined interface obligations. This is inconsistent with market feedback from the 2025 RFI process, which identified procurement independence as a precondition for private capital.
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. Market-sounding exercise through RFIs to gather market intelligence on PSP models
2. Review and revision of concession agreements
3. Policy frameworks and guidelines developed to support model selection and implementation.
In 2025-2026, several PSPs have entered the market:
Rail concessions:
- Third-party access: 7 TOCs in advanced TRIM negotiations (short-haul April 2026; full access April 2027)
- Container Corridor (Johannesburg–Durban): RFP expected end-2026
- Sidings lease (Klaserie, Ngagane, Krugersdorp): RFP released March 2026
- Rolling stock LeaseCo: RFP expected 2026
- B-Network Line Concession (Wolseley–Port Alfred Hamlet)
- Trim station leasing - phase 1 (western region)
Port PSPs:
- Durban Container Terminal Pier 2: ICTSI operational from 1 January 2026
- Richards Bay Dry Bulk Terminal: RFQ issued February 2026
- Richards Bay container terminal: Grindrod-led consortium appointed September 2025
- Ngqura Manganese Ore Export Terminal: RFQ expected April 2026
- Ngqura Liquid Bulk Terminal: RFP closed December 2025
- Maydon Wharf multipurpose terminal: under evaluation
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 and the White Paper on National Rail Policy commit government to a mix of private sector participation (PSP) models – open access, concessions and investment partnerships – to bring in capital and operating expertise. In March 2025 the Department of Transport (DoT) launched requests for information (RFIs) on key corridors. The first phase closed on 30 May and drew 162 formal responses from 52 respondents in 12 countries. Several transactions are now in market or concluded.
Transnet still designs and runs these processes itself. The Ngqura Manganese Export Corridor (NMEC) request for qualifications (RFQ), issued in September 2026, runs under Transnet's own partner-selection framework and sets out no role for the DoT PSP unit.
Released terms also push risk onto private partners. The Richards Bay Dry Bulk RFQ offers no volume protection or pre-defined interface obligations. The NMEC RFQ defers track access tenure beyond 15 years, payment security for the availability contract and the treatment of rolling stock to the request for proposals (RFP). This runs against market feedback from the 2025 RFI process, which identified procurement independence as a precondition for private capital.
Is it working?
No, private rail PSP is yet in commercial operation.
Transnet rail volumes rose 4.9% to 167m tonnes in 2025/26, short of the 180m target, against a government goal of 250m tonnes by 2030. Eleven private TOCs have signed rail access agreements. Transnet expects some to start operating in 2027 but highlights mainline maintenance backlogs and a shortage of rolling stock as key constraints.
Structural bottlenecks in the PSP unit have stretched timelines to commercial close to 2.5 years, which delays operational gains until 2027-2028. Poor network conditions and required infrastructure upgrades mean private operators face high upfront costs. A large step-up in investment is needed. It depends on clear conditions and remains clouded by Transnet's financial position and uncertainty about returns.
Actions
1. Market-sounding exercise through RFIs to gather market intelligence on PSP models
2. Review and revision of concession agreements
3. Policy frameworks and guidelines developed to support model selection and implementation.
In 2025-2026, several PSPs entered the market:
Rail transactions:
- 11 Train Operating Companies (TOCs) signed (full access April 2027)
- Container Corridor (Johannesburg–Durban): RFP expected in 2027. Transnet acknowledges concessionaires may struggle to make a profitable case without public or fiscal support
- Sidings lease (Klaserie, Ngagane, Krugersdorp): RFP released March 2026, later withdrawn and reissued in September
- Rolling stock LeaseCo: RFP released to two bidders
- Request for information for B-Network concessioning
- Trim station leasing - phase 1 (western region)
Integrated port and rail PSP:
Ngqura Manganese Export Corridor (NMEC): RFQ issued 23 September 2026, closing 26 February 2027.
Structure: one consortium forms a holding company with two ring-fenced special purpose vehicles (SPVs) for an indicative 25 years.
SPV1: Transnet holds 51% and the consortium 49%. It would run rail haulage and rolling stock, and design, build, finance, operate and maintain a 14.7Mtpa manganese terminal at Ngqura.
SPV2: the consortium holds 100%. It would rehabilitate and maintain the 1,100km corridor under an availability-based contract with TRIM.
Size: indicative investment of R30bn–R44bn and initial throughput of about 12Mtpa.
Next step: Transnet says it will issue the RFP by end-July 2027
Are there plans?
Yes. The DoT, supported by National Treasury and the DBSA, established the Rail and Logistics PSP Unit under a tripartite memorandum of agreement. An oversight committee of the three parties governs the programme. The DBSA advertised for the unit's head in April 2026. The unit's work programme covers model identification, market sounding (RFIs) and 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
PSP is central to government policy and the reform narrative. Public statements and Cabinet documents reference it explicitly. In the February 2026 SONA debate, Transport Minister Barbara Creecy committed to releasing RFPs for three large PSP projects in 2026. In her May 2026 Budget Vote she confirmed that major freight PSP projects would come to market in the current financial year.
References
Departments / Govt Institutions
Department of Transport The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet
Summary
The Freight Logistics Roadmap and the White Paper on National Rail Policy commit government to a mix of private sector participation (PSP) models – open access, concessions and investment partnerships – to bring in capital and operating expertise. In March 2025 the Department of Transport (DoT) launched requests for information (RFIs) on key corridors. The first phase closed on 30 May and drew 162 formal responses from 52 respondents in 12 countries. Several transactions are now in market or concluded.
Transnet still designs and runs these processes itself. The Ngqura Manganese Export Corridor (NMEC) request for qualifications (RFQ), issued in September 2026, runs under Transnet's own partner-selection framework and sets out no role for the DoT PSP unit.
Released terms also push risk onto private partners. The Richards Bay Dry Bulk RFQ offers no volume protection or pre-defined interface obligations. The NMEC RFQ defers track access tenure beyond 15 years, payment security for the availability contract and the treatment of rolling stock to the request for proposals (RFP). This runs against market feedback from the 2025 RFI process, which identified procurement independence as a precondition for private capital.
Is it working?
No, private rail PSP is yet in commercial operation.
Transnet rail volumes rose 4.9% to 167m tonnes in 2025/26, short of the 180m target, against a government goal of 250m tonnes by 2030. Eleven private TOCs have signed rail access agreements. Transnet expects some to start operating in 2027 but highlights mainline maintenance backlogs and a shortage of rolling stock as key constraints.
Structural bottlenecks in the PSP unit have stretched timelines to commercial close to 2.5 years, which delays operational gains until 2027-2028. Poor network conditions and required infrastructure upgrades mean private operators face high upfront costs. A large step-up in investment is needed. It depends on clear conditions and remains clouded by Transnet's financial position and uncertainty about returns.
Actions
1. Market-sounding exercise through RFIs to gather market intelligence on PSP models
2. Review and revision of concession agreements
3. Policy frameworks and guidelines developed to support model selection and implementation.
In 2025-2026, several PSPs entered the market:
Rail transactions:
- 11 Train Operating Companies (TOCs) signed (full access April 2027)
- Container Corridor (Johannesburg–Durban): RFP expected in 2027. Transnet acknowledges concessionaires may struggle to make a profitable case without public or fiscal support
- Sidings lease (Klaserie, Ngagane, Krugersdorp): RFP released March 2026, later withdrawn and reissued in September
- Rolling stock LeaseCo: RFP released to two bidders
- Request for information for B-Network concessioning
- Trim station leasing - phase 1 (western region)
Integrated port and rail PSP:
Ngqura Manganese Export Corridor (NMEC): RFQ issued 23 September 2026, closing 26 February 2027.
Structure: one consortium forms a holding company with two ring-fenced special purpose vehicles (SPVs) for an indicative 25 years.
SPV1: Transnet holds 51% and the consortium 49%. It would run rail haulage and rolling stock, and design, build, finance, operate and maintain a 14.7Mtpa manganese terminal at Ngqura.
SPV2: the consortium holds 100%. It would rehabilitate and maintain the 1,100km corridor under an availability-based contract with TRIM.
Size: indicative investment of R30bn–R44bn and initial throughput of about 12Mtpa.
Next step: Transnet says it will issue the RFP by end-July 2027
Are there plans?
Yes. The DoT, supported by National Treasury and the DBSA, established the Rail and Logistics PSP Unit under a tripartite memorandum of agreement. An oversight committee of the three parties governs the programme. The DBSA advertised for the unit's head in April 2026. The unit's work programme covers model identification, market sounding (RFIs) and 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
PSP is central to government policy and the reform narrative. Public statements and Cabinet documents reference it explicitly. In the February 2026 SONA debate, Transport Minister Barbara Creecy committed to releasing RFPs for three large PSP projects in 2026. In her May 2026 Budget Vote she confirmed that major freight PSP projects would come to market in the current financial year.
References
Departments / Govt Institutions
Department of Transport The Passenger Rail Agency of South Africa (PRASA) The Presidency Transnet