The government is ramping up its initiatives aimed at economic recovery by creating unprecedented opportunities for private sector involvement.
This was highlighted by Deputy Minister of Finance, David Masondo, and Minister for Transport Barbara Creecy during their addresses at the Rand Merchant Bank (RMB) Think Summit on Thursday.
Masondo shared insights on the new phases of Operation Vulindlela, stating that a significant stride towards reform is the establishment of the National Water Resources Infrastructure Agency (NWRIA).
This independent body will focus on designing, planning, financing, and managing bulk water infrastructure, having the capacity to leverage its balance sheet for robust financial backing in infrastructure projects.
The government’s commitment to improving water services is further underscored by the introduction of a Water Partnerships Office.
This initiative aims to foster private sector participation in water infrastructure development, ensuring a plethora of projects centred on water re-use, desalination, and the management of non-revenue water are already in various stages of planning.
Masondo also emphasised the government’s endeavour to enhance accountability and performance within water service provisioning.
The forthcoming Water Services Amendment Bill is set to delineate the roles of Water Service Authorities and Water Service Providers, thus enabling capable service providers to take charge at the local government level through different models, such as regional utilities.
Turning to the rail sector, plans are advancing towards the unbundling of Transnet into distinct entities for infrastructure and operational management.
The long-awaited establishment of the National Ports Authority and the Rail Infrastructure Manager as subsidiaries with their own governance structures marks a pivotal shift in operational strategy.
“In parallel, significant progress has been made to introduce private sector participation in port and rail infrastructure. An international terminal operator has been selected to partner with Transnet at the Durban Pier 2 container terminal, which will enable the introduction of private sector participation in container terminal operations for the first time,” Masondo said.
The drive for private sector engagement continues with a Request for Information (RFI) released in March, aimed at highlighting further opportunities in various corridors and terminal operations, including iron ore, manganese, coal, and chrome.
An anticipated Request for Proposal (RFP) will follow later this year, setting the stage for significant private sector investment in South Africa’s transport sector.
In the realm of energy, Masondo announced a critical Ministerial determination to facilitate the construction of over 1 000 km of new transmission lines by private sector entities. The establishment of the National Transmission Company of South Africa (NTCSA) aims at creating an independent entity that will oversee a fully independent Transmission System Operator within five years.
“A market code has been developed which will outline the rules of the market, and is expected to be finalized by April 2026. This will facilitate greater competition in electricity generation and enable private investment,” Masondo said.
Meanwhile, Creecy provided insights into plans for enhancing passenger rail services, indicating that Transnet was ready to issue an RFI in June covering operational aspects such as signalling, depots, and high-speed rail corridors.
These insights will empower the Passenger Rail of South Africa to prepare timely RFPs, expected to launch in October.
Further, a private sector participation unit will be hosted by the Development Bank of Southern Africa to streamline future bidding processes and uphold local empowerment and labour needs.
In a concerted effort to address regulatory challenges, the Interim Rail Economic Regulatory Capacity (IRERC) has been created, eventually to be integrated into the new Transport Economic Regulator aimed at optimising operational efficiencies and regulatory coherence.
Significant efforts have been directed towards collaboration between Transnet and the private sector, particularly in creating dedicated “war rooms” for specific corridors and commodities to tackle challenges like derailments and unanticipated maintenance, as highlighted by Creecy.
“The establishment of various “war rooms” for specific corridors and commodities has allowed Transnet and the private sector to collaborate and share expertise, and address challenges such as derailments and unplanned maintenance,” Creecy said.
She said Transnet will put in bids to the budget facility for infrastructure at National Treasury for maintenance and refurbishment of the network and selected terminals.
“Joint initiatives have managed to increase freight volumes to 161 million tons per annum in March 2025. While this is still a long way from our 2030 target of 220 million tons, its an improvement on past performance,” Creecy said.
Transnet’s recovery plan emphasises the refurbishment of essential port equipment and close cooperation with original equipment manufacturers to ensure operational efficiency.
Recent efforts include a R17 billion concession contract for five private sector partners aimed at constructing and operating several liquid bulk terminals at the Port of Richards Bay.
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