Given the May 9 deadline for submissions on various identified strategic projects in the rail and logistics sector, companies have been intensifying efforts to explore investment opportunities in key infrastructure upgrades.

On March 23, South Africa’s rail operator, State-owned freight company Transnet, in partnership with the Department of Transport, issued a request for information (RFI) to interested and affected parties regarding potential private sector participation (PSP) in rail and port freight logistics projects.

According to pan-African law firm Bowmans, the RFI marks a significant step forward, creating scope for medium-term upgrades to South Africa’s rail and port network.

Bowmans partner Andrew Pike noted, in a press release issued last month, that, in line with the ‘Roadmap for the Freight Logistics System in South Africa’, the RFI represents a move to attract PSP aimed at enhancing rail and port infrastructure and operations.

“In recent years, the logistics system has faced considerable challenges, reducing efficiency and hindering job creation, export growth and broader economic expansion,” Pike stated.

He added that the RFI could pave the way for a more conducive environment for private investment, fostering greater collaboration with the private sector. This is expected to boost investment, improve logistics efficiency, and align rail and port infrastructure with international standards.

The RFI focuses on the following key transport corridors and commodities: Northern Cape to Saldanha Bulk Minerals Corridor, for iron-ore and manganese exports; Northern Cape to Nelson Mandela Bay Corridor for manganese exports; Limpopo and Mpumalanga to Richards Bay Bulk Minerals Corridor for coal, chrome and magnetite exports; and  Intermodal Supply Chain corridors from Gauteng to KwaZulu-Natal, Eastern Cape and Western Cape.

Rail Traffic Boom

In response, South African rail services firms such as Traxtion are scaling up to align with the anticipated rail reform. The sub-Saharan African multi-service rail logistics and mobility solutions provider expects the growing demand for services to boost demand for rolling stock.

To meet this demand, Traxtion has expanded its Rail Services Hub in Pretoria by adding a 2 500 m² facility. The hub can currently service up to 14 trains at a time. Traxtion explained, in a press release issued on April 22, that the new facility will house the company’s parts store, which is expected to see increased activity as rail traffic grows.

Traxtion CEO James Holley said that the hub enables the company to perform high-quality interventions on rolling stock.

He explained that Traxtion is focused on the modernisation and maintenance of locomotives, supporting operators in improving fleet management and operational efficiency across South Africa’s rail network.

He confirmed that the company is actively preparing for the expected momentum in rail sector reform.

South Africa rail operator, Transnet’s Rail Infrastructure Manager (TRIM) in early February extended the deadline for slot allocation applications from February 7 to February 27, 2025. The operator confirmed that it received 98 applications by this time.

TRIM also said that it plans to begin allocating slots to successful applicants from June this year. This is expected to trigger a significant uptick in rail traffic across the country.