TRANSNET has issued a request for proposals (RFP) to two shortlisted bidders to establish a rolling stock leasing company, a key milestone in South Africa’s rail reform programme.
The RFP follows the completion of a request for qualification (RFQ) process launched in April 2025, which attracted 14 submissions. The proposed leasing company, known as LeaseCo, is intended to improve access to rolling stock for established and emerging freight operators in South Africa and the wider region.
LeaseCo will operate as an independently governed commercial entity and will acquire, manage and lease rolling stock to domestic and regional customers. Transnet will contribute a ring-fenced fleet of rolling stock assets as equity, together with original equipment manufacturer capabilities through its Transnet Engineering division. The majority private-sector partner will provide investment, technical expertise and operational capability to manage, refurbish and expand the fleet.
Transnet Rail Infrastructure Manager (Trim) has concluded agreements with 11 operators granted access to the South African network. The operators will transport coal, manganese, containers, fuel, and general freight, which Trim says will drive diversification and competitiveness across the network, and is expected to add 24 million tonnes of freight traffic, with the potential to increase this to 52 million tonnes over the next five years
Transnet says it is already engaging with newly licensed operators to assess their fleet requirements and has secured five operators for LeaseCo's services. Demand is expected to grow further as Trim allocates additional network capacity to operators.
"Significant unmet freight demand, driven by a shortage of available rolling stock, presents a compelling opportunity for a dedicated leasing entity,” says Transnet Group chief executive, Michelle Phillips. “LeaseCo represents a transformative initiative primed to modernise Africa's rail system, mobilise private capital, and enhance the reliability of freight logistics.”
