The Mining Indaba has shone the spotlight this week on the mining sector, one of Transnet’s main customers. Reforms and investment certainty are no longer abstract policy debates at the utility; they are operational realities underpinned by measurable performance improvements enabling South Africa’s mining competitiveness.
The recurring question is whether South Africa’s freight logistics reforms are real or merely rhetorical. The evidence is unambiguous. Private sector participation (PSP) has moved beyond policy frameworks to executed transactions, supported by a growing pipeline of bankable opportunities.
The work we have undertaken over the past two years to stabilise the business while concurrently pursuing reforms has enabled our customers to plan with certainty as we restore the reliability of key corridors, particularly for the mining sector.
At Transnet, reforms are not standalone interventions or policy imperatives but are fully embedded in our strategic direction and operating model. Through our reinvent-for-growth strategy, we have set a clear ambition to transform Transnet from operational recovery to sustainable growth through infrastructure investment, improved efficiency and pursuit of PSP deals.
Our economy cannot afford lethargic reform. We are therefore moving with urgency to implement structural changes. This commitment is grounded in a clear understanding that logistics reform is not a Transnet issue but a national imperative.
About a year ago, the sector was absorbing the implications of the final network statement issued by the minister of transport in December 2024. It was a major policy milestone but still largely conceptual. Today, the conversation has shifted from policy intent to operational execution.
This commitment is grounded in a clear understanding that logistics reform is not a Transnet issue but a national imperative.
In August 2025, the selection of 11 train operating companies (TOCs) marked a defining moment in South Africa’s rail reform journey.
For the first time, open access is no longer an aspiration, but it is a structured, competitive reality taking shape. The Transnet rail infrastructure manager (TRIM) is in advanced negotiations with the TOCs to conclude access agreements, with several operators expected to commence rail operations in financial 2027.
The strategic partnership with International Container Terminal Services to manage and upgrade pier 2 at the Durban container terminal was delayed by a legal dispute, but with this now out of the way we have moved decisively into implementation.
The reform programme has required us to reimagine what Transnet must look like in the decades ahead — not only as a logistics operator but as a strategic enabler of South Africa’s energy and industrial transition.
The Zululand energy terminal (Zet) is a clear example of this forward-looking approach. Structured as a joint venture between Vopak Terminal Durban and Transnet Pipelines, the agreement concluded in February 2025 grants Zet the right to develop and operate South Africa’s first liquefied natural gas (LNG) import terminal in Richards Bay for a 25-year period.
The LNG terminal is a strategic initiative to enhance South Africa’s energy security as the country faces a looming “gas cliff” and the gradual decommissioning of coal-fired power stations.
Some of the key PSP projects we will be pursuing in this calendar year include the Richards Bay dry bulk terminal and the Ngqura manganese export terminal, and the establishment of a rolling stock leasing company (LeaseCo).
We are at an advanced stage of preparing a request for proposals for the establishment of LeaseCo, expected to be issued in the second quarter of 2026.
The establishment of LeaseCo is a critical pillar of the rail reform agenda. It will be responsible for the acquisition, management and leasing of rolling stock to both domestic and regional markets.
We are at an advanced stage of preparing a request for proposals for the establishment of LeaseCo, expected to be issued in the second quarter of 2026.
Significant unmet freight demand, driven by a shortage of available rolling stock, presents a compelling opportunity for a dedicated leasing entity. While the process of establishing LeaseCo is under way, Transnet is also actively engaging newly licensed TOCs through tactical leasing, to assess their rolling stock requirements and secure early demand for LeaseCo’s services.
Initial engagements indicate strong market demand, which is expected to grow further as TRIM allocates additional network slots to TOCs. A request for quotations for the Richards Bay dry bulk terminal project will be issued to the market soon.
This terminal is a critical export gateway for bulk commodities, particularly chrome and magnetite. While the terminal has strong fundamentals and performance has improved significantly, sustained growth requires additional capital investment, modernised operating practices and enhanced efficiency across the value chain.
Through this transaction, we seek to leverage private sector expertise and funding to accelerate infrastructure upgrades and operational improvements.
This is expected to enhance terminal efficiency, reliability, and throughput capacity — supporting the competitiveness of South Africa’s mining and export sectors.
The success of Transnet’s reforms will be measured not by boasts but by volumes moved, vessels turned around, contracts signed and growth enabled. We are reducing logistics inefficiencies; crowding in private sector capital and expertise; restoring reliability; and positioning South Africa as a dependable trading partner, because when Transnet works, South Africa thrives.
• Sangqu is chair of the Transnet board
Business Times
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