Transport Minister mining for information

RFI launched to develop private sector participation

SOUTH AFRICA: Aiming to capitalise on the private sector interest in participating in the port and rail sectors, Minister of Transport, Barbara Creecy has launched a Request for Information to develop infrastructure from “pit to port” for specific mineral resource corridors as well as port and terminal infrastructure for an automotive corridor.

Noting the government’s limited resources to fund infrastructure development and address backlogs, Creecy admitted that state-owned entities (SOEs) were struggling to fulfil their critical mandates.

“Together with Transnet, Government has received numerous unsolicited proposals from the private sector offering investment, skills, and expertise to support the rehabilitation and reform of our struggling rail and port systems,” she said at a press conference held in Pretoria.

“These are not formal procurement processes in themselves but a mechanism to understand and source information from the market.”

“This overwhelming interest has made it clear that the Department and Transnet must engage in broad and inclusive market engagement before issuing Requests for Proposals (RFPs) in August this year. These are not formal procurement processes in themselves but a mechanism to understand and source information from the market,” she added during the launch of process to gather information aimed at developing an enabling environment for private sector participation and enhanced investment in rail and port infrastructure.

“I believe that the efficiency of the logistics systems is integral to the functioning of all economies,” she said reminding journalists of the importance of the ports and rail network in promoting trade and economic growth.

Unit to drive private participation

The Department of Transport (DoT) has been mandated to establish a dedicated Private Sector Participation (PSP) Unit that will be tasked to support Transnet and PRASA in identifying and concluding private participating projects (PPPs).

According to Creecy the DoT is in the final stages of concluding a Memorandum of Agreement with the Development Bank of Southern Africa (DBSA) and the National Treasury, appointing DBSA as the hosting institution for the Unit.

“We have set up an interim PSP Unit within the Department, comprising a team with extensive expertise in structuring PSP contracts and procurement,” she said during the press conference.

RFI focus approach

Announcing the RFI today, the Minister noted that the initial phase of the RFI will focus on

● Northern-Cape to Saldanha Bulk Minerals Corridor (ore and manganese exports)
● Northern-Cape to Nelson Mandela Bay Corridor (manganese exports)
● Limpopo and Mpumalanga to Richards Bay Bulk Minerals Corridor (coal, chrome and magnetite exports)
● Intermodal Supply Chain PSP Project (containers and automotive sectors)

Established as a research and consultation process, the RFI will collect information via an online portal between 24 March and 9 May 2025 that will be used to inform the development of potential PSP projects.

“Participation in the RFI offers a valuable opportunity to help shape future initiatives,” said Creecy who made assurances that all information would be treated with strict confidentiality. All submitted responses will be reviewed and feedback will be provided.

“The RFI represents a pivotal step forward in our shared commitment to building a 21st-century transport system that goes beyond mobility to strengthen industrial competitiveness, deepen regional integration, and drive inclusive economic growth,” she said, adding that information provided would help the government clearly define the scope and context of future PPPs.

“The DoT will ensure that the views of a range of other stakeholders are brought into the deliberations, including organised labour,” she said.