State-owned freight logistics group Transnet has initiated a process to select a private partner for a new leasing company, or ‘LeaseCo’, that will lease rail rolling stock to private train operating companies (TOCs).

A request for qualification (RFQ) has been issued seeking submissions from entities interested in partnering with Transnet, with the subsequent request for proposals (RFP) to be limited to respondents shortlisted during this pre-tender phase.

Transnet has indicated previously that LeaseCo will supply wagons and locomotives to the TOCs that could arise as a result of reforms designed to open the domestic network to third-party operators.

In a statement announcing the RFQ, Transent said the proposed entity will drive the acquisition, management and leasing of rail rolling stock to domestic and regional markets.

“The establishment of the LeaseCo 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.”

Access to rolling stock is viewed as a potential constraint to these reforms, despite the Transnet Rail Infrastructure Manager, or TRIM, having confirmed recently that it received 98 applications for slots being made available across the network.

However, the poor state of the physical network, as well as proposed tariff increases have also been held up as likely constraints to the introduction of third-party operators.

Separately, the Department of Transport has launched a request for information to test market appetite for potential private sector participation (PSP) investments across key rail corridors and has set a May 9 closing date for submissions.

The responses will help guide the development of the first PSP procurement phase, which could begin before the end of August.

The LeaseCo RFQ submission period, meanwhile, remains open until July 4 and shortlisted bidders from the process will proceed to an RFP phase in August.

Noncompulsory virtual briefings on the RFQ are scheduled for 11:00 and 15:00 on May 6.