Transnet Seeks Private Partner to Launch South Africa’s First Rolling Stock Leasing Company

Transnet, South Africa’s state-owned freight and logistics company, has announced plans to launch a rolling stock leasing company (LeaseCo) and is now seeking a private sector partner to co-develop the initiative.

The move forms a key part of South Africa’s broader strategy to open up the freight rail market to competition, enhance infrastructure access, and revitalise the country’s underperforming logistics system.

Transforming Rail Through Public-Private Partnership

According to Transnet, the proposed LeaseCo aims to diversify its revenue streams and ensure new train operators can access rolling stock—a critical step in building a more competitive and efficient rail ecosystem.

The private partner is expected to hold a majority equity stake and contribute financial, technical, and operational expertise. Transnet, for its part, plans to contribute significant rolling stock assets:

• 600 diesel locomotives (D34, D36, D37 series)

• 18E electric locomotives

• 21,000 freight wagons

Request for Qualifications Open Until July

Transnet has issued a Request for Qualifications (RFQ), which remains open until July 4, 2025. Shortlisted companies will then receive a Request for Proposals (RFP) in August, with the final partner selection to follow.

The company estimates that roughly half of the offered locomotives and wagons will be pre-contracted to domestic and regional customers on five-year or longer leases by the time the LeaseCo is operational. The remaining units will require refurbishment, and Transnet anticipates that new acquisitions will also be necessary to meet rising demand.

Regional Demand Fuelling the Project

Transnet’s vision extends beyond South Africa. A 2021 regional market study, conducted with rail operators from DR Congo, Zambia, Zimbabwe and Eswatini, found that regional demand could exceed 17,000 wagons and nearly 170 diesel locomotives by 2030.

The LeaseCo would therefore be well-positioned to serve both local and regional rail operators, supporting economic growth and trade in Southern Africa.

A Boost for South Africa’s Rail Reform

This initiative comes amid ongoing efforts by the South African government to reform the country’s rail freight system, unlock private investment, and reduce the cost of doing business.

By partnering with the private sector, Transnet hopes to accelerate the modernisation of rail infrastructure, increase capacity, and deliver long-term operational improvements across the network.

Transnet’s push to create a rolling stock leasing company signals a bold shift in how South Africa manages its freight infrastructure—opening the door to competition and efficiency in a sector that is critical to the country’s economic recovery.

{Source: Railway Gazette}

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