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State-owned logistics company Transnet has issued a request for proposals (RFP) for two shortlisted bidders to support the state leasing company (LeaseCo) which will be responsible for the acquisition, management and leasing of rolling stock.
In a statement on Monday, Transnet said the RFP marked another important step towards building a more competitive and inclusive rail ecosystem that enhances economic growth and improves logistics performance.
Transnet described the establishment of LeaseCo as a cornerstone of South Africa’s rail reform agenda, saying it was designed to modernise freight rail operations, attract private sector investment, and create opportunities for broader participation in rail operations.
Transnet CEO Michelle Phillips said a substantial amount of unmet freight demand, driven by a shortage of available rolling stock, presented a compelling opportunity for a dedicated leasing entity.
“LeaseCo represents a transformative initiative primed to modernise Africa’s rail system, mobilise private capital, and enhance the reliability of freight logistics. With the significant demand from Train Operating Companies (TOCs), LeaseCo is well-positioned as an appealing investment opportunity,” said Phillips.
Transnet will contribute a ring-fenced fleet of rolling stock assets as equity, as well as original equipment manufacturer capabilities through its operating division, Transnet Engineering. The private sector majority partner will bring capital, technical expertise and operational capability to revitalise, manage and expand the fleet.
— Transnet CEO Michelle Phillips
The group said the expansion of rolling stock will see LeaseCo helping to unlock economic growth and strengthen supply chains across the region.
It said the business is structured as a commercially viable, independently governed leasing entity.
“Transnet will contribute a ring-fenced fleet of rolling stock assets as equity, as well as original equipment manufacturer capabilities through its operating division, Transnet Engineering. The private sector majority partner will bring capital, technical expertise and operational capability to revitalise, manage and expand the fleet.”
Transnet is already engaging newly licensed TOCs to better understand their rolling stock requirements and has secured five TOCs for LeaseCo’s services.
The establishment of LeasCo is part of structural reforms to bolster volume moved by Transnet Freight Rail which took a knock after years of under-investment and a lack of maintenance.
Transnet said the initial engagements point to a strong market appetite, which is expected to grow as the Transnet Rail Infrastructure Manager allocates additional network slots to operators.
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