Creecy launches request for information process to tackle struggling rail and port infrastructure

To tackle South Africa's struggling rail and port infrastructure, plagued by rampant theft and vandalism, minister of transport Barbara Creecy has launched an online request for information (RFI) process.

This, she said, will create an enabling environment for private sector participation and foster increased investment in rail and port infrastructure and operations.

Creecy said together with Transnet, the government has received numerous unsolicited proposals from the private sector offering investment, skills and expertise to support the rehabilitation and reform of the struggling rail and port systems.

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

“South Africa's rail and port infrastructure faces substantial challenges, including declining performance, theft and vandalism, underinvestment and operational inefficiencies. All of these hinder trade and economic growth,” Creecy told a media briefing on Sunday in Pretoria.

According to Creecy, limited availability of state resources to fund infrastructure development and address backlogs had intensified the challenges. State-owned entities have also been severely restricted to fulfil their critical mandates, she said.

Creecy said to ensure the requests for proposals were responded to, the government recognised the importance of understanding the freight logistics landscape through the perspective of interested and affected parties.

She said the RFI focuses on:

• The Northern Cape to Saldanha Bulk Minerals Corridor primarily for iron ore and manganese exports, and the Northern Cape to Nelson Mandela Bay Corridor, primarily for manganese exports. This includes the complete pit-to-port rail, port, terminal infrastructure, and equipment supporting the transport of iron ore from mines in the greater Sishen—Postmasburg region to the Port of Saldanha, as well as the movement of manganese from mines located between Hotazel and Postmasburg to the Port of Saldanha, and to the ports of Gqeberha and Ngqura in Nelson Mandela Bay and the back-of-port arrangements.
• Limpopo and Mpumalanga to Richards Bay Bulk Minerals Corridor PSP Project for coal and chrome exports, including provision for magnetite exports in port. This includes the full pit-to-port rail, port, and terminal infrastructure and equipment supporting coal exports from mines in Lephalale, Limpopo; chrome exports from the “Western Limb” mines in the Rustenburg-Brits region in North West; and coal exports from various mines across Mpumalanga and KwaZulu-Natal to the Port of Richards Bay. Particular attention is given to the Bayvue precinct, where non-RBCT coal, chrome and magnetite are handled through the dry bulk and multipurpose terminals and the back-of-port arrangements.
• Intermodal Supply Chain PSP Project focused on the container and automotive sectors, including the potential designation of the South African container port system as a regional transshipment hub for major shipping lines. This includes 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 (East London, Gqeberha, Ngqura), and Gauteng—Western Cape (Cape Town) corridors.

Creecy said an interim private sector participation (PSP) unit has been set up within the department comprising a team that will structure contracts and procurement. The interim PSP unit has also developed the Rail Freight and Port RFIs in collaboration with Transnet.

She said the RFI must be completed online and can be accessed through the department of transport’s website or directly at www.psp-rfi.co.za. The portal will remain open for eight weeks, from March 24 to May 9. She said submitted responses will be reviewed and feedback will be provided.

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