SOUTH AFRICA: Stated-owned logistics business Transnet is seeking a private sector partner to help establish a rolling stock leasing company as part of the opening of the rail freight market to competition.
The LeaseCo would diversify Transnet’s revenues, and support the government’s rail reform plans by ensuring that new train operators have access to rolling stock.
A request for qualifications is open until July 4, with the request for proposals to be issued to shortlisted companies in August.
Transnet plans to contribute about 600 D34, D36 and D37 diesel and 18E electric locomotives and 21 000 wagons to the LeaseCo. The private sector partner would bring financial, technical and operational expertise and hold a majority equity stake.
Transnet expects that by the time the LeaseCo is established, around half of the locomotives and wagons would have been contracted to domestic and regional customers on leases of five years or more. The rest would need to be refurbished before being contracted, and Transnet expects that new acquisitions would be needed to meet market demand.
A 2021 market study undertaken by Transnet with SNCC in DR Congo, Zambia Railways Ltd, National Railways of Zimbabwe and Eswatini Railways estimated a total regional demand of over 17 000 wagons and nearly 170 diesel locomotives by 2030.
