SOUTH AFRICA: Transport Minister Barbara Creecy announced on February 19 that Transnet Rail Infrastructure Manager is seeking for private sector participation on three rail freight infrastructure projects. Concessions are envisaged for a 25-year build, operate, transfer model and request for proposals are expected to be called later this year.
The government has also been seeking private sector interest for investment in a proposed high speed rail line linking the Durban area, the conurbation around Johannesburg and Tshwane (formerly Pretoria), as well as Musina and Mbombela in the northeast of the country.
Freight concession plan
On February 20, TRIM issued a request for qualifications for a private partner which is to develop the Richards Bay Dry Bulk Terminal. The private partner is to hold a stake in the terminal and invest in increasing its handling capacity from the current 18·5 million tonnes to 26·9 million tonnes.
TRIM is also to seek a private partner to upgrade the manganese shipment corridor linking Hotazel in Northern Cape to the ports of Gqeberha (formerly Port Elizabeth) and Ngqura. The concessionaire is also to create a bulk terminal with a capacity of 12 million tonnes at Ngqura, supporting a long-standing plan for freight trains to be rerouted to avoid Gqeberha.
TRIM is also looking for private sector interest to improve the performance of the intermodal corridor linking Durban to Johannesburg and the City Deep container terminal in Gauteng.
Companies show interest
‘We are seriously looking to participate in the planned concessions for the Natcor Container corridor [Durban – Johannesburg / City Deep] as several third parties approached us to partner up on that’, Youssef Elgonaid, CEO of private freight operator and logistics provider African Rail Company, told Railway Gazette International. ‘We are also interested in participation in the manganese corridor bids, but the container corridor remains the main priority for us.’
‘We are open to engaging in concession or co-investment discussions on selected operational lines where targeted infrastructure investment directly supports and enhances our operations’, added Pragasen Pillay, Head of Rail Logistics at local mining company subsidiary Menar Ports & Rail. MPR would primarily support investments to ‘improve track condition and operational safety standards, increase slot availability and overall corridor throughput, reduce cycle times and improve asset utilisation, enhance operational reliability and network predictability, as well as improve overall corridor efficiency for the benefit of our customers and possibly the broader freight system.’
James Holley, CEO of Traxtion, also told Railway Gazette International that his company was interested in the opportunity. ‘We support concession and PPP models that create durable, performance-based frameworks for private investment in both rolling stock and infrastructure.
‘South Africa’s freight network requires significant capital to modernise track, signalling, and operational systems. The private sector can deploy capital at scale where concession structures provide long-term certainty, operational accountability, and a balanced allocation of risk’, Holley said. ‘We are actively assessing corridor opportunities aligned to proven freight demand and our operating footprint. As concession models are clarified, we remain open to participating in priority corridors. However, reliability, performance accountability, and industrial participation must be embedded in their design.’
High speed aspiration
The Department of Transport ‘continues to assess investor appetite for commuter rail, including rapid regional rail, linking Gauteng [Johannesburg and Tshwane], Musina, Mbombela and eThekwini [Durban area]’, Creecy reported on February 19.
President Cyril Ramaphosa said on February 24 that the government was committed in the development of high speed rail connection ‘on strategic routes, including eThekwini to Johannesburg and Johannesburg to Musina.
‘Nearly 30 companies indicated their willingness to participate in high speed rail corridors when we put out a request for information last year. We are preparing to send out a request for proposals’, Ramaphosa added.
- Learn more about the opening up of the South African rail freight market in the April 2026 issue of Railway Gazette International.
