Transnet has moved ahead with plans to establish a rolling stock leasing company aimed at improving access to locomotives and wagons for freight rail operators, issuing a Request for Proposals (RFP) to two shortlisted bidders.
The proposed Leasing Company (LeaseCo) will be responsible for acquiring, managing and leasing rolling stock to domestic and regional markets. Transnet said the initiative was intended to address one of the rail sector's key challenges: access to reliable rolling stock.
The establishment of LeaseCo forms part of South Africa's rail reform programme and is intended to support both established and emerging Train Operating Companies (TOCs). By expanding access to locomotives and wagons, the company aims to lower barriers to entry for operators seeking to run services on the rail network.
The state-owned company said it was already engaging newly licensed TOCs to better understand their rolling stock requirements and had secured five TOCs for LeaseCo's services.
Transnet will contribute a ring-fenced fleet of rolling stock assets as equity, as well as Original Equipment Manufacturer capabilities through Transnet Engineering. The private sector majority partner will provide capital, technical expertise and operational capability to revitalise, manage and expand the fleet.
The RFP follows the conclusion of a Request for Qualification (RFQ) process launched in April 2025, which attracted 14 submissions. Two bidders have been shortlisted to participate in the next phase.
Demand for rolling stock remained strong, said Transnet group chief executive Michelle Phillips. "Significant unmet freight demand, driven by a shortage of available rolling stock, presents a compelling opportunity for a dedicated leasing entity," she added.
Demand for LeaseCo's services is expected to grow as the Transnet Rail Infrastructure Manager (TRIM) allocates additional network slots to train operators, according to Transnet. The company said initial engagements with operators had pointed to strong market demand for leased rolling stock.
