Transnet one step closer to private rail partners

Transnet will issue a request for proposals (RFP) later this year and begin the formal procurement process to bring substantial private sector investment into SA's rail infrastructure, probably through a concessioning model, says Minister of Transport Barbara Creecy.

- Roy Cokayne

However, Creecy emphasised that, once again, this process will take place in the context of "the network as a whole remaining in state ownership".

Creecy told the Sara Rail Conference on Tuesday to sustain SA's economy, the government cannot afford to wait until potential private sector participation (PSP) - still in its initial phase - reaches financial close before launching a programme to rehabilitate Transnet's rail network.

She reiterated that immediate sources of finance for this work include Transnet's current infrastructure budgets, two applications to National Treasury's Budget Facility for Infrastructure (BFI), and a joint funding and collaboration framework, which could allow current customers to assist in repairing the network without adding to Transnet's debt.