The Department of Transport and state-owned Transnet will launch market engagements within the next two months to attract private sector participation (PSP) in key infrastructure projects, Finance Minister Enoch Godongwana confirmed in his 2025 Budget speech, initially scheduled for delivery on February 19.
The planned PSP projects cover major freight rail corridors, including iron ore, chrome, coal, and manganese lines.
Additional initiatives include expanding and automating the ferrochrome and magnetite terminal at the Port of Richards Bay, enhancing container and automotive logistics, and positioning South Africa’s container port system as a regional transshipment hub for major shipping lines. The establishment of an independent rolling stock leasing company is also under consideration.
Should Transnet require financial support for these PSP projects, the Budget Facility for Infrastructure will assess funding options following proper financial structuring.
Godongwana also indicated that additional government guarantees may be considered to help refinance Transnet’s maturing debt and sustain its operational needs.
