In a significant development for the future of South Africa’s freight logistics system, Transport Minister Barbara Creecy has launched an online Request for Information (RFI) to attract private sector participation in key rail and port freight logistics projects. The initiative marks a pivotal milestone in government’s efforts to revitalise the country’s transport infrastructure while promoting investment, competition, and inclusive economic growth.
Minister Creecy emphasised that while strategic infrastructure such as rail lines and ports will remain state-owned, the RFI is designed to foster collaboration between public and private sectors to improve service efficiency and expand capacity across key trade corridors. The move aligns with government’s Freight Logistics Roadmap, which balances public ownership with greater operational competition to reach world-class standards in infrastructure and services.
A Response to Urgent Challenges
South Africa’s rail and port networks face mounting challenges, including vandalism, theft, underinvestment, and operational inefficiencies. Minister Creecy noted that the limited availability of public funds has further constrained the ability of state-owned enterprises to respond effectively. However, numerous unsolicited proposals from private investors have demonstrated strong market interest and highlighted the need for a structured approach to industry engagement.
This RFI represents the first step in a broader market consultation process ahead of formal Requests for Proposals (RFPs), expected in August 2025. While not a procurement process in itself, the RFI allows the Department of Transport and Transnet to gather essential information to inform future project design and bidding frameworks.
Target Corridors for Private Sector Participation
The initial RFI phase focuses on three freight corridors of national significance:
- Northern Cape to Saldanha and Nelson Mandela Bay Corridors
- Supporting bulk iron ore and manganese exports.
- Includes pit-to-port infrastructure from mining regions such as Postmasburg to ports at Saldanha, Port Elizabeth, and Ngqura.
- Limpopo and Mpumalanga to Richards Bay Corridor
- Focused on coal, chrome, and magnetite exports.
- Includes infrastructure from mines in Limpopo, North West (Rustenburg-Brits), and Mpumalanga to the Port of Richards Bay, particularly the Bayview precinct.
- Intermodal Supply Chain Corridors
- Targeting the container and automotive sectors, with the potential for a regional transhipment hub.
- Includes ports, terminals, rail, and inland logistics infrastructure across Gauteng–Durban, Gauteng–Eastern Cape (East London, Port Elizabeth, Ngqura), and Gauteng–Western Cape (Cape Town).
Building a 21st Century Logistics System
The RFI initiative is aligned with South Africa’s vision for a modernised transport system that drives industrial competitiveness and regional integration. The Department of Transport has committed to engaging all relevant stakeholders, including organised labour, to ensure sustainable and inclusive outcomes.
This work is guided by the Private Sector Participation (PSP) Framework, approved by Cabinet in 2023, which mandates the establishment of a dedicated PSP Unit within the department. An interim unit is already operational, with support from Transnet, and is responsible for coordinating the rail and port RFIs now available online.
The Development Bank of South Africa (DBSA) is expected to host the PSP Unit under a Memorandum of Understanding with the Department of Transport and National Treasury.
Key Principles Guiding the Process
Minister Creecy outlined the principles guiding the PSP process:
- All reforms will align with the Cabinet-approved Freight Logistics Roadmap.
- Job retention is a key priority, especially for employees at Transnet and PRASA.
- State ownership of fixed assets will be maintained to avoid fragmentation of the logistics system.
- Strong emphasis will be placed on localisation, industrialisation, and support for sectors such as steel production and local rail manufacturing.
- The process will actively promote broad-based black economic empowerment (BBBEE), gender equality, and support for SMEs and new entrants in the sector.
How to Participate
The RFI must be completed online and is available through the Department of Transport website or directly at: www.psp-rfi.co.za
The portal is open from 24 March to 9 May 2025. All submissions will be treated as confidential and used exclusively to guide the development of future project opportunities.
Following the conclusion of the RFI phase, formal RFPs will be issued through the PSP Unit in late August. A second batch of RFIs, focused on passenger rail projects, is scheduled for May 2025.
In closing, Minister Creecy called on all interested parties to actively engage in the RFI process and contribute to shaping a future-focused and globally competitive freight logistics system: “It is my belief that working together, we will achieve more.”
Access the speaking notes here: https://www.gov.za/news/media-statements/minister-barbara-creecy-launches-private-sector-participation-rail%C2%A0and-port
