Southern Africa
South Africa
Transport / Infrastructure
Intermodal Supply Chain Freight Rail Corridor, South Africa
- South Africa’s Department of Transport (DoT) invited responses by 31 May to a request for information (RfI) that will be used to guide freight transport and logistics company Transnet and the Passenger Rail Agency of South Africa (PRASA) in developing private sector participation (PSP) projects for rail and port infrastructure and operations
- The RfI was launched in late March as part of the initial phase of South Africa’s PSP programme and focuses on three freight rail corridors. These include the Intermodal Supply Chain Project (container and automotive corridors)
- The PSP project is planned to enable the designation of the country’s container port system as a regional transshipment hub for major shipping lines, with the ports of Durban, Cape Town and Ngqura occupying a geographically significant position at the crossroads of major global maritime routes, making them ideal candidates for developing a hub catering to Africa and Atlantic-facing South America
- The project covers the port, container and automotive port terminals, back-of-port arrangements, and railway and inland terminals for the Gauteng-Durban port (KZN), Gauteng-Eastern Cape (ports of East London, Elizabeth and Ngqura), and Gauteng-Western Cape (Cape Town) corridors
- The PSP scheme will target improved performances for both container and automotive port terminals
- Underinvestment, theft and vandalism have left rail infrastructure on South Africa’s container corridor in critical disrepair, while the ongoing failure to recapitalise and maintain rolling stock has further weakened performance. Addressing these challenges will require significant restorative capital investments and asset renewal programmes to upgrade the rail network and restore operational capacity, as well as improve rail services
- In addition, with the advent of rail reform and the implementation of open access, Transnet Rail Infrastructure Manager (TRIM) is obligated to provide a safe, operable rail network for train operating companies (TOCs) within the corridor. Thus, a critical focus for the container corridor in 2024/25 will be the improvement of rail network infrastructure to ensure safety, reliability and efficiency for current and future operations
- Meanwhile, the development of the automotive rail corridors, with an overall length of 1,123km, is set to facilitate Project Ukuvuselela as well as address congestion at the Port of Durban, which is expected to increase as Chinese, Indian and South Korean companies, which have no local assembly facilities, gain market share. As congestion rises, so could the feasibility of attracting imports to Port Elizabeth. In addition to the transport of fully assembled vehicles, the project could also cater to potential automobile terminals or special economic zones, both inland (Gauteng) and at the ports
- The intention of the PSP project is to promote private investment in Transnet infrastructure while the network remains state-owned
- A request for proposals (RfP) is planned to be launched in September
- Interim solutions to meet capital investment needs by the entity include project-based applications to the Budget Facility for Infrastructure. Transnet is also working with the National Treasury and the Presidency to develop a joint collaboration and funding policy to support immediate capital improvements by the private sector in priority freight corridors
- The background information for the RfI can be viewed here
