Latest news with #Transnet
IOL News
an hour ago
- Business
- IOL News
Transnet approaches market for new liquid bulk terminal at the Port of Ngqura
Transnet National Ports Authority (TNPA) said on Friday that it has issued a Request for Proposals (RFP) for the appointment of a Terminal Operator to fund, design, develop, construct, operate, maintain and transfer a liquid bulk terminal at the Port of Ngqura, for a concession period of 25 years. The RFP is a ground-breaking milestone in the relocation of the tank farm from the Port of Port Elizabeth to the Port of Ngqura, in line with approved port development plans. The move comes as Transnet is implementing its Reinvent for Growth Strategy, which seeks to transform and grow the business. The new terminal will include liquid bulk storage tanks, road tanker loading gantries, pipelines and the necessary terminal operation infrastructure.
IOL News
a day ago
- Politics
- IOL News
Former Transnet CEO Brian Molefe faces arrest over R93 million corruption case
Former Transnet and Eskom CEO Brian Molefe is facing arrest over fraud and corruption charges during his time as Transnet CEO. He is currently a member of parliament for the Umkhonto we Sizwe (MK) party. "Brian Molefe is an MK MP, and we note his impending arrest in his capacity during his time at Transnet. "While the law must be applied fairly, unfortunately, as a party, we have noted this is not always the case. There seems to be a purge of black professionals, particularly those from MK. "Our president, Jacob Zuma, has not received a fair process from the justice system, and we hope that Molefe's process will not be a repeat of this and that he will not be victimised due to his association with MK," MK spokesperson Nhlamulo Ndhlela told IOL in response. The charges against Molefe relate to a R93 million purchase of locomotives for Transnet during his tenure at the state entity. IOL understands his lawyer is negotiating bail ahead of his handing himself over to law enforcement. This is a developing story. IOL
Zawya
a day ago
- Business
- Zawya
Minister Barbara Creecy outlines South Africa's rail, logistics and transport recovery plan
South Africa's Minister of Transport, Barbara Creecy, says fixing the country's transport and logistics infrastructure is one of government's biggest priorities, with both urgent short-term interventions and long-term reforms on the table. Creecy was speaking during a PSG Think Big webinar on Tuesday, 24 June 2025, where she gave an update on progress made since her appointment a year ago, as well as what lies ahead for rail, roads, ports and aviation in the country. The conversation was hosted by financial journalist and anchor Alishia Seckam. The Transport Department oversees 16 state-owned entities, including Transnet, Prasa, the Road Accident Fund, Acsa, ATNS and others. Targets for recovery Creecy said logistics bottlenecks have become a major constraint on South Africa's economy, costing the country as much as R1bn a day. A clear set of five-year performance targets has been introduced for the sector, including: • Increasing freight moved on Transnet's rail network from 149 million tonnes to 250 million tonnes annually. • Raising port productivity to 30 gross crane moves per hour, which is the international benchmark. • Restoring Prasa's commuter network to 600 million passenger journeys a year by 2030 (currently sitting at 77 million, with 35 of the 40 key lines now operational). • Increasing air passenger numbers through Acsa's network to 42 million annually and tripling air freight to 1.2 million tonnes per year. • Reducing road accidents and fatalities by 50% by 2030. Creecy also noted that digitisation and modern control systems would be a priority in future network upgrades, as South Africa's signalling and control infrastructure remains far behind global standards. Slow but steady progress On rail freight, Creecy said Transnet had increased tonnage from 149 million tonnes to 161 million tonnes in the past year. Major problems remain with the condition of the country's rail network, including ageing infrastructure, signalling problems and a lack of investment. A request for infrastructure funding has been submitted to National Treasury, alongside longer-term rail reform plans. These include opening key freight corridors to private operators and third parties for the first time. 'We've issued a network statement, and by year-end, we hope to appoint third-party operators on five of the country's priority freight lines," Creecy said. An interim economic regulator is in place, and private sector interest has been strong, with 163 submissions received through a recent request for information (RFI). The process attracted more than 11,000 site visits, reflecting significant appetite from private operators. Short-term fixes alongside long-term reform Creecy said government was balancing urgent operational improvements with longer-term changes. On ports, new equipment like cranes and straddle carriers has been procured and will be commissioned this year. On rail, an emphasis has been placed on restoring signalling so that newly manufactured Prasa trains can be fully deployed. "We have 287 of the 600 new Prasa trains in service, but to run them properly, we need the signalling in place," she said. Transnet has set itself an ambitious target of 180 million tonnes for the 2025 financial year — whether it will reach it remains to be seen, but Creecy said it was important to set ambitious goals to drive progress. New rail master plan and legislation on the way Creecy confirmed a National Rail Master Plan would be released for public consultation later this year. It will cover both fixing the existing network and mapping out future upgrades, including a potential move from narrow gauge to standard gauge lines, which would allow for faster, double-stacked container trains. South Africa's current network, excluding Gautrain, largely dates back to the 1970s, leaving it behind other economies where rail systems are already highly digitised and automated. A new National Rail Bill is also being prepared. "It will be the first legislation to properly regulate all aspects of rail in South Africa,' she said, adding that enshrining reforms in law was critical to ensure continuity beyond changes in political leadership. Linking infrastructure to industrial policy Creecy said reforms would be closely aligned with South Africa's industrial strategy, including localisation. A key focus will be on using local steel and manufacturing capacity for rail upgrades. "Between Minister Ramokgopa's energy transmission tower programme and our rail revamp, we believe we can create a demand of about 200,000 tonnes of South African-made steel a year," she said. Prasa is already using 145 tonnes of locally produced steel per new train. Creecy added that it's a conversation already underway between herself, Minister Ramokgopa and Minister Tau, aimed at linking infrastructure investment to local economic stimulus. Positioning for regional rail opportunities Creecy said South Africa's logistics expertise could be exported to the region once the local network stabilises. "There are already projects underway like the railway from Maputo to Walvis Bay, and from the DRC to Angola via the Lobito corridor. South African companies are involved in those builds. So while some see this as competition, it's also future business for Transnet and local operators," she said. She noted that revitalising South Africa's own network would be essential to position Transnet to compete and participate commercially in these future regional opportunities. Creecy closed by saying that while the logistics challenges are significant, steady progress is being made through partnerships between government, business and private investors. The combination of interim repairs, opening parts of the network to new operators, and laying the groundwork for future reforms would help rebuild South Africa's transport and logistics sector in the years ahead. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Daily Maverick
2 days ago
- Business
- Daily Maverick
Creecy's new Rail Bill promises reform measured in six key numbers
South Africa's logistics infrastructure is under construction and Transport Minister Barbara Creecy has laid out an overhaul plan with six hard numbers and a new Rail Bill. In a rare moment of relatability from the GNU member with the most 'tannie energy', Barbara Creecy said that being transport minister is the worst and best job she's had. 'The best because there's so much to contribute, the worst because there are lots of things that are wrong, and fixing them is very complicated.' 'Complicated' is generous. The logistics bottlenecks in South Africa's rail infrastructure are bleeding billions per day from the economy. But Creecy said her department is moving to tackle the mess with a soon-to-be tabled bill and what she describes as 'overwhelming appetite' from the private sector. Six numbers to shape a sector The minister's 'six numbers' sit at the centre of her department's overhaul masterplan: Ambitious targets, however, don't build tracks. What's needed is a structure to support them. Laying down the law A first-of-its-kind Rail Bill is set to be introduced later this year, according to Creecy, in an effort to move rail reform into legislation. 'This bill aims to legislate reforms intended to transform the freight and passenger rail sectors,' the Department of Transport told Daily Maverick. 'The department believes that this Rail Bill will offer legal clarity regarding future policy directions.' Creecy stressed that the underlying infrastructure will remain in state hands, managed by the Transnet Infrastructure Manager. Private sector appetite The Department of Transport issued a Request for Information (RFI) in March this year – 162 submissions were brought, along with 11,600 visits to the site, which signalled interest across major freight corridors, especially that of ports, Creecy said. 'It's going to mean that future proposals will be responsive,' she said. 'We have seen situations where proposals that have been put out by state-owned entities have not been appetising to the market.' Some companies have already approached the department with funding offers for urgent fixes, Creecy detailed. In the meantime, Transnet has launched funding requests with National Treasury's Budget Facility for Infrastructure for short-term, urgent repairs and long-term revitalisation. How does this affect you? If the transformation goes to plan: Cheaper goods if logistics costs come down Job creation through infrastructure development and manufacturing Reliable exports and better trade performance Less road congestion and more efficient freight If not: Lower tax revenue and reduced income for operational entities Shrinking global logistics share could trigger job losses Freight and port processing costs will continue to rise Higher product prices will cut consumer spending and access Can the state afford it? According to Creecy, the state needs to be investing about R15-billion to R20-billion a year to have the network functioning effectively. 'It is plausible,' said transport economist Dr Johann van Rensburg, but only if this number also takes into account maintenance and future upgrades. Council for Scientific and Industrial Research transport economist Shaun Mhlanga also believes this investment to be possible, pointing to hybrid models that blend government guarantees, private investment and multilateral funding. Mhlanga added that the recent approval of a R51-billion government guarantee and the African Development Bank's R18.8-billion loan to Transnet, show that this is feasible. Dr Alex Malapane, an independent economic analyst, says this estimate is 'fiscally unrealistic, yet politically seductive'. With debt service costs exceeding R380-billion annually, Malapane argues that relying on the public purse alone would be irresponsible. 'True reform means handing over operational control. Anything less continues the cycle of underdelivery and overpromising.' Weak bones, long returns The transformation plan stems from an unavoidable reality: the network is ancient. 'Our existing network has not been developed since the 1970s, with the exception of the Gautrain,' Creecy said, adding that the country still uses narrow-gauge tracks and outdated control systems. The return on this investment won't come quickly. Mhlanga estimates five to 15 years for most major upgrades to show results. Malapane confirmed this, but said that it's not a cause for delaying action. 'Reducing turnaround times at Durban port or unblocking key freight corridors would improve export volumes in under 36 months. The idea that infrastructure only pays off in the long term ignores the multiplier effect that high-impact upgrades can have,' he said. Van Rensburg said the payoff begins the moment new infrastructure opens. If the infrastructure is in better condition, maintenance costs drop, operational efficiency rises and user costs fall, but only if the benefits of the upgrades are not inflated, he said. Transnet's reinvention by necessity Transnet's debt structure is a major concern, according to Creecy, and is thus being restructured into a state-owned infrastructure provider. Private operators will be able to run trains on key routes, pay access fees and offer niche services, such as agricultural and tourism lines. Creecy acknowledges that although South Africa is about 20 years behind the curve, we can learn from the mistakes of other countries with more advanced systems.
Bloomberg
2 days ago
- Business
- Bloomberg
Transnet Coal Shipments Rise as Security Improves, Thungela Says
South Africa's state logistics company has ramped up deliveries of coal on the country's main export rail line after addressing operational and security-related issues, according to Thungela Resources Ltd. Transnet SOC Ltd. is on track to transport 55.5 million tons of coal from mines to the Richards Bay export terminal this year, which would be about 7% more than in 2024, Thungela said in a trading statement on Thursday. Shipments of the fuel from the terminal, Africa's biggest, rose for the first time in seven years in 2024.
