SA Transport Minister Calls for Private Sector Participants

Minister Barbara Creecy has launched a Request for Information (RFI) to encourage private sector involvement in rail and port freight logistics projects in South Africa. This initiative seeks to improve the performance of rail networks and ports, which are crucial for trade and economic growth. The government will retain ownership of these infrastructures while allowing for private investment and competition in their operations. 

The RFI aims to address the challenges faced by South Africa’s rail and port infrastructure, including theft, vandalism, and inefficiencies caused by limited state resources. To tackle these issues, the government has received several private sector proposals to support the rehabilitation and improvement of these systems. Engaging the market through the RFI will help the Department of Transport and Transnet understand the needs and inputs of interested parties before formally requesting proposals later. 

The initial phase of the RFI will target specific transport corridors, including the Northern-Cape to Saldanha and the Limpopo and Mpumalanga to Richards Bay corridors, focusing on the movement of minerals like iron ore and coal. It also includes an intermodal supply chain project for container and automotive sectors, aiming to position South African ports as regional transshipment hubs. 

This RFI marks a step towards creating a modern transport system that enhances industrial competitiveness and promotes inclusive economic growth. The input collected will be confidential and used to inform future initiatives. The RFI is available online from March 24 to May 9, 2025, after which responses will be reviewed, and an RFP will be issued. 

The government is taking steps to ensure effective private sector participation in logistics through the establishment of a dedicated Private Sector Participation Unit within the Department of Transport. This unit will streamline collaboration with Transnet and help manage potential projects. 

In the interim, the government recognizes the need for immediate rehabilitation of the rail and port infrastructures. Efforts are underway to assess and fund projects to improve Transnet’s performance in the interim while moving toward long-term solutions. The corrections aim to safeguard state-owned assets while promoting economic inclusion and supporting local industries. Stakeholders are encouraged to participate in shaping the future of these projects, and another RFI focused on passenger rail initiatives will be released in May 2025.

South Africa's rail and port infrastructure faces significant challenges that have far-reaching implications for the country's economic growth and competitiveness. These challenges are multifaceted, encompassing issues of underinvestment, operational inefficiencies, and security concerns. Here is a detailed overview of the current state and efforts to address these challenges:

Current State of Rail Infrastructure

South Africa's rail infrastructure has been plagued by declining performance and underinvestment for several years. According to Chris Campbell, CEO of the Construction Engineering South Africa (CESA), the rail network is not reliable enough for timely transport of freight, leading to an increased use of road freight haulers, which is more costly and environmentally damaging  The state-owned logistics firm Transnet has been struggling with substantial debt, estimated at over R150 billion, which hinders its ability to maintain and upgrade the rail network


South Africa has a rich transport infrastructure, including extensive road and rail systems, as well as well-equipped ports and airports, comparable to those in developed countries. However, the CEO Chris Campbell points out that neglect and poor management have led to significant deterioration in these transport systems, which has serious consequences. He notes that inadequate maintenance of roads and ineffective stormwater systems have compromised the long-term integrity of roadways. Furthermore, many road safety signs have become hard to see, jeopardizing road safety. 

In terms of rail transport, the commuter rail system is not functioning well, causing commuters to rely on more expensive public transport alternatives. Long-distance rail services are lacking in reliability, which pushes freight transport to road haulage, typically at a higher cost. Campbell highlights that the increased traffic from heavy freight vehicles aggravates road safety and damages road infrastructure, which was not designed for such loads. 

Campbell believes that simple fixes are insufficient for many transport systems, necessitating radical changes in how they are managed. He emphasizes the need for the National Framework towards the Professionalisation of the Public Sector, endorsed by President Cyril Ramaphosa, to be implemented across public entities to bring about necessary improvements. He also calls for a balanced mix of experienced and young professionals in technical teams and stresses the importance of mentorship to support new entrants in the field. 

The issues of crime and corruption also continue to hinder transport networks and must be addressed. Campbell asserts that it is the government's responsibility, as the owner of public transport infrastructure, to ensure proper maintenance and upgrades to meet growing demands. An increasing population and urbanization require a well-integrated urban transport system, resembling those in developed nations where all types of transport share space without conflict. 

He critiques the bus rapid transit system, indicating it has not successfully attracted passengers and suggests resources could be better spent on improving existing transport systems. There should be readiness to acknowledge when a system fails and identify exit strategies instead of continuing to invest in unsuccessful projects. 

Campbell calls for the creation of a more integrated transport framework and stronger public-private partnerships. He notes that rising vehicle numbers lead to congestion, underscoring the need to promote secure transport options like park-and-ride and ride-sharing in the absence of a reliable commuter rail service. 

He discusses the potential benefits of extending the Gautrain to alleviate congestion and the need for a reliable rail service in Cape Town. He suggests that if the Passenger Rail Agency of South Africa cannot manage this effectively, the city might take on the responsibility, similar to private operations for public freight. 

Furthermore, Campbell insists that the entire taxi system, including mini-buses and ride-hailing, needs regulation to ensure safety and balance competition, making it part of a reliable transport network. He acknowledges that governmental financial limitations complicate the maintenance and upgrades of infrastructure and urges that private sector investments and user fees be utilized to alleviate financial pressure. 

He also points out that state-owned enterprises like the South African National Roads Agency should not be overwhelmed with additional responsibilities that hinder their primary focus on national routes. Instead, provincial governments should be empowered with the proper expertise to manage their mandates effectively. 

Finally, Campbell concludes that functional transport networks roads, rail, air, and sea are crucial for economic growth. Allowing further deterioration risks reaching a tipping point that could be detrimental to the economy, which is vital for addressing the social needs of the country.

Other Challenges:

Theft and vandalism have been significant issues, particularly with the theft of cables used to run electric trains and the scarcity of locomotive parts. This has led to a reduction in the operational capacity of the rail network. In 2023, Transnet announced plans to reduce its freight rail network by around 35% to address these challenges 

Operational inefficiencies have also contributed to the decline in rail performance. The lack of sufficient and functional rail infrastructure has created a significant disparity, particularly in the movement of bulk commodities such as coal and iron ore. For instance, coal exports dropped to a 30-year low of 48 million tons in 2023, and iron ore shipments hit a decade-low 

South Africa's major ports, particularly the Port of Durban, have experienced severe congestion and delays. In late 2023, backlogs outside the Port of Durban reached a crisis point, with an estimated 79 vessels and more than 61,000 containers forced to remain at outer anchorage due to operational challenges, equipment failures, and bad weather  Similar issues have been reported at the Port of Cape Town and other major ports.

The inefficiencies of South Africa’s port terminals have led to the increasing diversion of cargo to neighboring competitors, such as the Ports of Maputo, Walvis Bay, and Luanda. This threatens South Africa’s long-term trade competitiveness 

The South African government has launched several initiatives to address the challenges in the rail and port sectors. Hopefully, the Request for Information launched by Barbara Creecy will be the beginning of a new era to revive the country's rail and port infrastructure. The initiative includes the port, container, and automotive port terminals, back-of-port arrangements, and railway and inland terminals for key corridors 

Public-private partnerships are seen as a crucial mechanism to bring new investment and improve efficiency. The government and Transnet are working with private sector companies to conclude partnerships at the Durban and Ngqura container terminals. These partnerships aim to enable new investment in ports and improve their efficiency 

The government plans to spend R900 billion by 2027 on rail infrastructure. However, these plans have been beset by regulatory and organizational challenges, as well as theft of cabling, rail, and station infrastructure  Transnet has also announced plans to introduce concessionary/third-party operators into its branch lines and main lines network to increase private freight rolling stock.