By Johnathan Paoli
Transport Minister Barbara Creecy launched the first phase of the online Request for Information (RFI) platform on Sunday.
It is part of a broader plan to reform and modernise Transnet and the national transport infrastructure while ensuring that core assets remain publicly owned.
Recognising the need for urgent intervention, Creecy announced the development of the Roadmap for The Freight Logistics System, which outlines how strategic infrastructure such as rail lines and ports will remain under public ownership while inviting private sector participation in terminal operations and logistics improvements.
“It will enable us to articulate the challenges in a structured and coherent way, clearly defining their scope, context and impact to inform the development of focused, strategic, and sustainable solutions.
“It will provide a pivotal step forward in our shared commitment to building a 21st-century transport system that goes beyond mobility to strengthen industrial competitiveness, deepen regional integration, and drive inclusive economic growth,” she said.
South Africa’s rail and port infrastructure has faced substantial challenges in recent years, including declining performance, theft, vandalism, under-investment and operational inefficiencies.
Decades of mismanagement, financial constraints and infrastructure degradation have severely impacted South Africa’s rail and port operations.
The inability of Transnet to adequately fund infrastructure improvements has led to a decline in efficiency, hindering trade and economic growth. Theft and vandalism of rail assets have further exacerbated these challenges, which has disrupted operations and leading to significant revenue losses.
Moreover, aging equipment and inefficiencies at ports have driven many businesses to rely more heavily on road transport, increasing congestion and road maintenance costs.
Creecy emphasised that attracting private investment was crucial to upgrading infrastructure to world-class standards.
The RFI aims to gather input from potential investors and stakeholders ahead of issuing formal Requests for Proposals (RFPs) in August 2025.
She said this consultative process would help tailor future projects to market realities, ensuring effective and sustainable solutions.
The government has identified several critical freight corridors for potential private sector investment.
The Northern Cape to Saldanha Bulk Minerals corridor, which focuses on iron ore and manganese exports, will encompass pit-to-port rail, port and terminal infrastructure improvements.
Limpopo and Mpumalanga to Richards Bay Bulk Minerals corridor initiative, targeting coal and chrome exports, will improve rail connectivity from major mining regions to the Port of Richards Bay.
The inter-modal supply chain project is designed to enhance container and automotive sector logistics, including the development of a South African port system as a regional transshipment hub.
Creecy said these projects were expected to increase efficiency, reduce transport costs and strengthen South Africa’s role in global trade.
While private sector participation presents opportunities, several obstacles remain, including regulatory uncertainty, security concerns, job security for Transnet employees and the impact of the public-private balance.
To facilitate private sector participation, the government has established a Private Sector Participation Unit, housed within the Development Bank of Southern Africa.
This unit will oversee project structuring and procurement, ensuring alignment with policy frameworks such as the 2022 White Paper on National Rail Policy and the 2023 Private Sector Participation Framework.
Furthermore, immediate rehabilitation efforts are underway, with Independent Technical Assessments to be conducted for key export rail corridors, and funding sources have been identified, including Transnet’s internal budget for maintenance and equipment purchases, National Treasury’s Budget Facility for infrastructure and private investment under existing customer agreements.
Creecy said her department’s efforts to engage the private sector in rail and port infrastructure development marked a significant step toward revitalising the country’s freight logistics system, and by balancing public ownership with strategic private investment, the administration aimed to enhance efficiency, drive economic growth and ensure long-term sustainability.
She said the success of these initiatives depended on effective collaboration between government entities, investors, labor unions and the broader business community, and that the nation’s ability to modernise its transport sector would be critical in positioning itself as a competitive player in global trade.
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