Transnet approaches market for lease of container corridor

30th January 2023 By: Tasneem Bulbulia - Senior Contributing Editor Online

Ports and rail operator Transnet, as part of its partnerships strategy, has decided to engage the market to invest in and grow Transnet Freight Rail’s (TFR’s) containerised freight business, which services the country’s manufacturing sector.

To this end, Transnet will issue a request for qualifications (RFQ) to the market to identify parties interested in entering into an operating lease with TFR for the operation and maintenance of the container corridor (the line between Johannesburg and Durban) for a period of 20 years.

The container corridor rail mainline is a fully electrified double-tracked rail line running from Booth, in KwaZulu-Natal, to Union, in Gauteng.

While the mainline is 670 km in route length, the double line and various major marshalling yards and enabling rail lines takes the total track length of the corridor to 1 621 km.

The operating lease will provide for the required investment in the rehabilitation, upgrade and maintenance of the rail network and rolling stock assets, as well as the operations of the container corridor, which includes the Bayhead Back of Port Terminal and defined inland terminals at City Deep, Kascon and Bayhead.

The involvement of the private sector is intended to result in a significant shift of containers from road to rail and increased operational reliability and efficiency, Transnet says.  

The RFQ will be made available on the Transnet website and the National Treasury e-tender portal.

Shortlisted respondents from the RFQ process may be invited to submit proposals to Transnet through a request for proposals process.