Minister of Transport Minister Barbara Creecy says the government is now looking to the private sector for investment and expertise to address these long-standing challenges at Transnet.

She explained that state resources alone are not sufficient to fund the necessary infrastructure upgrades and clear existing backlogs. After receiving unsolicited proposals from private companies offering support, the government opted to launch a formal market engagement process before issuing official requests for proposals in August.

“We urgently need private sector investment in our port and rail infrastructure,” Creecy said. “These systems have been underperforming for some time, largely due to their poor state. Since the national budget cannot cover all the required funding, we are setting up a private sector participation unit under the Development Bank of Southern Africa.”

The ongoing inefficiencies in rail and port operations are having a direct impact on industries such as mining and manufacturing, making it increasingly difficult to move goods for export. Creecy warned that if the situation is not addressed, thousands of jobs could be at risk.

“Studies show that port inefficiencies are costing the country around a billion Rand every day,” she said. “If we don’t fix this infrastructure, many workers, especially those in mining, could face job losses.”

The engagement portal for private sector input will remain open until May 9. A second phase of market consultations, focused on passenger rail projects, is set to be launched later that month.

--ChannelAfrica--