Transnet Launches Lease RFPs for Rail Sidings to Modernise Freight Logistics

Transnet Rail Infrastructure Manager (TRIM) has launched a new phase of its market-opening strategy, issuing Requests for Proposals (RFPs) for the long-term lease of nine rail siding facilities across South Africa's Eastern and Central Regions—marking a significant step in efforts to revitalise the country's freight logistics network.

The move forms part of Transnet's broader reform agenda aimed at unlocking private sector investment, improving operational efficiency, and shifting freight from road to rail to reduce costs and congestion.

Long-term leases tied to performance and investment

Under the latest RFP, successful bidders will be granted leases for a minimum of 10 years, with strict performance and capital investment obligations built into the agreements.

Bidders are required to submit detailed proposals outlining infrastructure upgrades that will modernise the sidings and improve operational capacity. These upgrades are expected to include:

• Rail line refurbishment and track improvements

• Development of loading and handling facilities

• Drainage and stormwater systems

• Enhanced lighting and security infrastructure

• Perimeter fencing and controlled access roads

These improvements are intended to transform underutilised rail assets into high-performing logistics hubs capable of supporting efficient freight movement.

Driving road-to-rail shift and logistics efficiency

A central objective of the programme is to accelerate South Africa's transition from road-based freight to a more balanced and sustainable road-rail logistics system.

"This batch underscores TRIM's ongoing commitment to transparent, market-based access to critical rail assets," said TRIM Chief Executive Moshe Motlohi.

"By enabling private sector participation in siding operations, we are advancing a more efficient, competitive, and integrated freight logistics system for South Africa."

Operators will be expected to demonstrate measurable improvements in key performance indicators, including turnaround times, cargo throughput, and overall logistics efficiency—metrics that are critical to reducing supply chain bottlenecks.

Market-based model to ensure sustainability

The leasing framework is structured around market-related rental models, ensuring that Transnet secures fair value for its assets while maintaining their long-term sustainability.

This approach is designed to balance commercial viability with public interest, creating an environment where private operators can invest confidently while contributing to national logistics objectives.

Industry experts note that opening rail infrastructure to private players is a key reform required to improve competitiveness, particularly in sectors such as mining, agriculture, and manufacturing that rely heavily on bulk freight transport.

Part of a broader rail reform agenda

The latest RFP follows an earlier batch involving three siding facilities, indicating a phased and scalable approach to market liberalisation.

The programme aligns with key national policy frameworks, including:

• The National Rail Policy (2022)

• The Freight Logistics Roadmap (2023)

Both policies emphasise the need to commercialise rail assets, expand access to infrastructure, and improve efficiency through private sector participation.

"This initiative reinforces TRIM's mandate to commercialise rail assets in a responsible, transparent, and sustainable manner, while upholding the highest standards of safety, compliance, and network integrity," the agency said.

Transparent, multi-stage bidding process

The RFP process will follow a structured, multi-stage evaluation model designed to ensure fairness and competitiveness. The stages include:

1. Prequalification screening

2. Functional and technical evaluation

3. Final price and preference assessment

Safety, health, and regulatory compliance requirements are mandatory and non-negotiable across all stages.

Key dates and bidder engagement

To support prospective bidders, TRIM will host a non-compulsory virtual tender briefing on:

• Date: 17 April 2026

• Time: 10:00

• Platform: Microsoft Teams

The session will provide detailed insights into the facilities on offer, technical requirements, and the evaluation framework.

The deadline for bid submissions is set for 28 May 2026, giving investors just over a month to prepare and submit proposals.

Interested parties can access the full RFP documentation via Transnet's procurement platforms, including the National Treasury's e-Tender portal.

Unlocking value from strategic rail assets

With South Africa's logistics system under pressure from inefficiencies, infrastructure constraints, and rising transport costs, initiatives like the siding lease programme are seen as critical interventions.

By opening access to strategic rail infrastructure, Transnet aims to stimulate investment, enhance service delivery, and restore confidence in the rail sector.

The fourth batch of siding lease RFPs signals continued momentum in this reform process—positioning rail as a central pillar of South Africa's economic recovery and long-term growth strategy.