News24.com | Transnet seeks partner to help it lease railway vehicles to the market

Transnet says the leasing company will serve demand in the local and regional market.

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In a move towards third-party access, Transnet has called for partners to help it establish a company to lease rolling stock such as wagons and locomotives to the market.

The move comes in response to domestic and regional demand and is aligned with the policy directive for rail reform.

Transnet Engineering (TE), an operating division of Transnet, issued the request for proposals on Tuesday with a deadline of 30 June 2023.

Transnet said the leasing company "aims to create a more enabling environment by lowering barriers to entry for new train operating companies who will be utilising available slots on the network in line with the regime for third-party access".

The move follows a meeting with President Cyril Ramaphosa last week in which he directed Transnet to swiftly implement reforms and resolve an economically devastating logistics crisis.

Leasing is an "effective and sustainable global trend among global rail and port operators", and aims to grow and diversify Transnet Engineering’s revenue sources, while driving demand for its core business of manufacturing, re-manufacturing, maintenance, and engineering services, Transnet said in a statement.

The scope of the partnership includes the acquisition of capital assets; development of rolling stock and port equipment leasing capabilities in South Africa; leasing rolling stock assets in South Africa and other markets; the development of business opportunities; and ensuring that the capital assets are well maintained and to customers.

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