Transnet has issued a Request for Proposal (RFP) to two shortlisted bidders for the establishment of a rolling stock Leasing Company (LeaseCo), marking a key milestone in South Africa’s rail reform programme.
This follows the successful conclusion of the Request for Qualification (RFQ) process, which was launched in April 2025 and received 14 submissions.
In a statement on Monday, Transnet said the RFP marks another step towards a more competitive, inclusive and efficient rail ecosystem that supports growth and improves logistics performance.
LeaseCo will acquire, manage and lease rolling stock to domestic and regional markets, helping address shortages in reliable rail equipment.
The company is a cornerstone of the rail reform agenda, aimed at modernising freight operations, attracting private investment and widening participation in rail operations.
By improving asset use and access to rolling stock, LeaseCo will support established and emerging Train Operating Companies (TOCs), while strengthening regional supply chains.
It will operate 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 Transnet Engineering.
The private sector majority partner will provide capital, technical expertise and operational capability to revitalise and expand the fleet.
“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 Group Chief Executive Michelle Phillips said.
Transnet is engaging newly licensed TOCs to assess their rolling stock needs and has secured five TOCs for LeaseCo’s services. Demand is expected to grow as the Transnet Rail Infrastructure Manager (TRIM) allocates more network slots to operators. -SAnews.gov.za
