Transnet SOC Ltd. (“Transnet”) has reached a significant milestone in South Africa’s rail reform journey with the issuance of a Request for Proposals (RFP) to the two shortlisted bidders. This follows the successful conclusion of the Request for Qualification (RFQ) process, which was launched in April 2025 and received 14 submissions.
The Leasing Company (LeaseCo) will be responsible for the acquisition, management, and leasing of rolling stock to domestic and regional markets, creating a sustainable solution to one of the most pressing challenges facing the rail sector – access to reliable rolling stock. The establishment of LeaseCo is a cornerstone of South Africa’s rail reform agenda. It is designed to modernise freight rail operations, attract private sector investment, and create opportunities for broader participation in rail operations. By improving asset utilisation and expanding access to rolling stock, LeaseCo will support both established and emerging Train Operating Companies (TOCs), helping to unlock economic growth and strengthen supply chains across the region. The business is structured as a commercially viable, independently governed leasing entity. Transnet will contribute a ring-fenced fleet of rolling stock assets as equity, as well as Original Equipment Manufacturer (OEM) capabilities through its operating division, Transnet Engineering. The private sector majority partner will bring capital, technical expertise and operational capability to revitalise, manage and expand the fleet.
Transnet Group Chief Executive, Michelle Phillips said:
“Significant unmet freight demand, driven by a shortage of available rolling stock, presents a compelling opportunity for a dedicated leasing entity. LeaseCo represents a transformative initiative primed to modernise Africa’s rail system, mobilise private capital, and enhance the reliability of freight logistics. With the significant demand from TOCs, LeaseCo is well positioned as an appealing investment opportunity.”Transnet is already engaging newly licensed TOCs to better understand their rolling stock requirements and has secured five TOCs for LeaseCo’s services. Initial engagements point to a strong market appetite, which is expected to grow as the Transnet Rail Infrastructure Manager (TRIM) allocates additional network slots to operators. The issuance of the RFP marks another important step towards building a more competitive, inclusive, and efficient rail ecosystem that supports economic growth, improves logistics performance, and positions rail as a catalyst for South Africa’s competitiveness and regional development.
