State-owned freight logistics group Transnet says that is has concluded the evaluation of applications received for sale of rail slots on the Container and Cape corridors, following the initiation of a process on April 1 whereby bids were invited from the private sector for an initial 16 slots.

Despite criticism of the design of the slot sales, especially the fact that they would be valid for only two years, Transnet confirmed that it did receive bids by the August 31. However, it did not disclose the number of submissions, nor the identities of the bidders.

In a statement issued on November 23, Transnet reported that governance activities were now under way following the completion of the bid-evaluation phase, including the recommendation and final approval of the evaluation outcome for both the Container Corridor (Gauteng to Durban) and the Cape Corridor (Gauteng to East London).

“Once the final approval of the outcome has been granted, it will be communicated accordingly,” Transnet said, again without disclosing the number of bids that were evaluated.

No specific date was provided for the announcement of preferred bidders, nor was a timeframe provided for how long such bidders would have to achieve financial close.

Transnet is, however, under pressure to open up its network to third-party operators owing to the underperformance of Transnet Freight Rail (TFR), particularly on the Container Corridor, and the fact that the reform has been prioritised for implementation under Operation Vulindlela.

The 714-km Container Corridor links the Port of Durban to Gauteng both through Transnet’s inland terminals at City Deep, Kascon, Pretcon and Kaalfontein, and several accredited private sidings.

Transnet again confirmed that the slot-sale system would operate by means of temporary occupation of sections of the network to enable end-to-end passage of a train, TFR retaining ownership of the network.

“The sale of these slots to third-party operators expands the access that Transnet already grants to PRASA, approved Branch Line Operators, the luxury hospitality services provided by Rovos Rail and the Blue Train and Steam Train Operators to the rail network.

“In terms of this phase of the project, third party slot access will be valid for a two-year period with a contracting period of 24 months in terms of which the parties will enter into a Third-Party Access Agreement for the period.”

Transnet said the first phase will also provide key insights as inputs to the development of a robust policy implementation framework.