Government doubles down on concession model to unlock rail and port investment
South Africa’s logistics recovery drive is gathering pace, with Transport Minister Barbara Creecy confirming that Transnet will release three significant private sector participation (PSP) request for proposal (RFP) documents in 2026, including one expected to reach the market in February.
Speaking during the debate on President Cyril Ramaphosa’s State of the Nation Address (SoNA), Creecy outlined a bold infrastructure reform agenda centred on long-term concessions designed to attract private capital and operational expertise while preserving public ownership.
Richards Bay Dry Bulk Terminal RFP imminent
Creecy revealed that Transnet intends to release an RFP for the Richards Bay Dry Bulk Terminal “this month”.
Transnet has previously indicated plans to pursue a 25-year partnership to expand the terminal’s capacity from 18.5-million tons to 26.9-million tons. The expansion is aimed at strengthening its status as the leading bulk export terminal on South Africa’s eastern seaboard, improving efficiency, and boosting export competitiveness.
The move signals renewed momentum in modernising South Africa’s bulk export infrastructure, a critical pillar for mining and industrial sectors reliant on global markets.
Ngqura manganese export corridor to transform Nelson Mandela Bay
By mid-year, Transnet anticipates issuing RFPs for the Ngqura manganese export corridor PSP project. Through the Ngqura manganese export corridor concession, the aim is to consolidate manganese exports in Nelson Mandela Bay through a new 12-million-ton bulk terminal at the Port of Ngqura, integrated with an upgrade of rail capacity from the Northern Cape to Ngqura.
Beyond trade efficiency, the project also carries environmental significance. Creecy stated that once completed, the new manganese terminal would address the long-standing problem of manganese dust that affects residents of Gqeberha, an issue that has drawn sustained community concern.
The corridor upgrade is expected to streamline export flows while improving environmental and operational standards.
Container corridor concession to revive Johannesburg–Durban route
Transnet is also targeting the underperformance of South Africa’s primary container logistics corridor linking Johannesburg and Durban. The container corridor PSP project will use a 25-year concession model to mobilise private capital, expertise and operational capacity.
Creecy underscored the urgency of private participation in rail reform, stating:
“There are limited State resources to upgrade our rail network. This makes private-sector infrastructure investment critical,” Creecy said.
Her remarks echoed Ramaphosa’s SoNA announcement that major public-private partnerships for port terminals and rail corridors would be initiated this year through concession agreements that preserve State ownership while leveraging private-sector capability.
Durban Pier 2 partnership sets precedent
Ramaphosa highlighted that government recently concluded a partnership with International Container Terminal Services Incorporated to manage the Durban Pier 2 Container Terminal, the largest container terminal in the country.
“This partnership will result in new investment in equipment and infrastructure at the port, and will bring it back to world class standards,” Ramaphosa said.
The legally delayed agreement marks a turning point for South Africa’s busiest container hub, with expectations of improved performance, upgraded equipment and enhanced global competitiveness.
Appetite for commuter and rapid regional rail
Meanwhile, Creecy confirmed that her department continues to assess investor appetite for commuter rail, including rapid regional rail linking Gauteng, Musina, Mbombela and eThekwini.
This aligns with Ramaphosa’s broader vision to introduce high-speed rail corridors, a proposal that has faced political criticism but remains central to government’s long-term mobility strategy.
“Mr President it is our wish to find a financially sustainable, and affordable model to enable us to re-introduce rapid long-distance rail. It’s a difficult task you have given us. But we will spare no effort because we are convinced many citizens would find regional rail more convenient,” Creecy said.
A pivotal year for logistics reform
With three major RFPs expected in 2026 and concession models firmly embedded in policy direction, South Africa’s transport and logistics sector stands at a critical inflection point.
If successfully implemented, these PSP projects could expand export capacity, resolve environmental challenges, revitalise key freight corridors and restore global confidence in the country’s rail and port systems.