Creecy unveils private sector role in revitalising rail and port infrastructure

Photo by Hinrich Oltmanns via www.pexels.com

“Today, I am launching an online request for information to develop an enabling environment for Private Sector Participation (PSP) and enhance investment in rail and port infrastructure and operations,” Creecy said during a media briefing on Sunday, 23 March 2024.

The Minister described this decision as a significant step in the government’s efforts to partner with the private sector, ensuring that the country’s rail network and ports reclaim their crucial role in enhancing trade and driving economic growth.

Creecy highlighted the urgent need for intervention, citing significant challenges, including infrastructure deterioration, vandalism, theft, underinvestment, and operational inefficiencies that have hindered economic growth.

“The limited availability of state resources to fund infrastructure development and address backlogs has intensified these challenges, severely restricting the ability of State Owned Entities (SOEs) to fulfil their critical mandates,” she explained.

The Minister told journalists that Transnet and the government have received many “unsolicited“ proposals from the private sector offering investment skills and expertise to support the rehabilitation and reform of our struggling rail and port systems.

“This overwhelming interest has made it clear to the department and Transnet that we must engage in broad and inclusive market research before issuing requests for proposals in August this year.”

However, according to the Minister, these processes are not formal procurement methods but rather a mechanism to gather and analyse information from the market.

She stated that the government recognises the importance of understanding the freight logistics landscape from the perspective of interested and affected parties.

The Minister believes that this will ensure that solutions are both effective and sustainable during this initial phase of PSP.

The RFI targets key mineral export routes, including the corridor from the Northern Cape to Saldanha for iron ore and manganese exports, as well as the routes from Limpopo and Mpumalanga to Richards Bay for coal and chrome exports.

In addition, there is an intermodal supply chain project that focuses on the container and automotive sectors.

This project encompasses the port, container, and automotive port terminals, as well as back-of-port arrangements and railway and inland terminals.

It will also address the corridors connecting Gauteng and KwaZulu-Natal (Durban), Gauteng and Eastern Cape (East London, Port Elizabeth and Ngqura), and Gauteng and Western Cape (Cape Town).

“The RFI represents a pivotal step forward in our shared commitment to building a 21st-century transport system that goes beyond mobility to strengthen industrial competitiveness, deepen regional integration, and drive inclusive economic growth.”

Creecy believes this move will help the department express challenges in a structured and coherent manner, clearly defining their scope, context, and impact to guide the development of focused, strategic, and sustainable solutions.