South Africa’s logistics infrastructure state-owned company, Transnet, issued a Request for Qualification (RFQ) to start the selection process for a partner in the establishment of a rolling stock leasing company (LeaseCo).
The RFQ submission period remains open until 4 July 2025 and the shortlisted bidders will proceed to the Request for Proposal (RFP) phase in August 2025.
LeaseCo will drive the acquisition, management and leasing of rail rolling stock to domestic and regional markets.
The partnering with Transnet will be structured through participation in the equity and funding of a newly established entity.
The establishment of the rolling stock leasing company is part of the rail reform programme, which seeks to enhance the competitiveness of the South African freight system by working to ensure competitive industry supply chains and crowding in private sector investment. Central to this reform is the separation of rail infrastructure management from operations, which aims to level the playing field for both public and private sector operators.
LeaseCo aims to grow and diversify Transnet’s revenue through strategic partnerships with private sector partners by injecting capital while leveraging Transnet’s assets and technical capabilities. The new company will ensure that train operating companies have access to rolling stock, in line with efforts to revitalise the country’s rail network and unlock its potential to enhance competitiveness and support economic growth.
Transnet is the owner of South Africa’s railway, ports and pipelines infrastructure and is structured to provide transport and handling services through its seven operating divisions, including Transnet Freight Rail (TFR) which provides rail transport of bulk commodities for the export, regional and domestic markets.
Transnet Freight Rail faces a persistent challenge of locomotive and wagon shortages, equipment breakdowns because of the maintenance backlog, the increased cost of energy, reduced demand and increased crime and the effect of vandalism on critical equipment and infrastructure.
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