South Africa - South Africa - Transnet calls private sector to partner in inland terminal

Description

South Africa’s freight and logistics company Transnet this week launched its massive drive to bring private sector operators into the country’s freight system. The company has issued a request for proposals inviting suitably qualified global logistics service providers to design, build, operate, maintain and eventually hand over its proposed inland container terminal in Tambo Springs, East of Johannesburg. The concession will be over a 20 year period and will be Transnet's biggest private sector participation project to date.

The proposed terminal is in line with Transnet’s drive to migrate rail friendly cargo off the country’s road network.

The terminal is expected to be in operation by 2019 and will have an initial capacity of 144 000 TEUs per annum, with an option to ramp it up to 560 000 TEUs, depending on demand.

The project entails the following:

• Arrival and departure yard for handling cargo trains
• Terminal infrastructure;
• Terminal equipment;
• Stacking area;
• Warehousing space
• Distribution centre
• Inland Reefer facilities

Transnet Freight Rail will be responsible for the operation of the arrival and departure yard required to service the terminal.

The operator will be responsible for loading and offloading of containers and marketing of the facility. The winning bidder is expected to introduce new entrants - particularly black players - must have demonstrated technical expertise, a minimum of level 4 BBBEE status with a commitment to reach level 2 by the third year of operation.

Transnet currently operates 5 inland terminals in Gauteng, including the City Deep Container Terminal in Johannesburg, Africa’s largest inland port.

The proposed terminal is an integral part of the Presidential Infrastructure Co-ordinating Committee’s SIP 2, aimed at unlocking the country’s industrial development while boosting export capability. It is designed to complement Transnet’s container-handling capacity in the province.

This is the culmination of years of hard work and a demonstration of cooperative governance between Transnet, representing the national competence, and both the Gauteng Provincial Government and the Ekurhuleni Municipality.

The Tambo Springs terminal is one of three mega terminals that Transnet is planning to build in Gauteng over the next 20 years. It will be located in Ekurhuleni along the N3, just off the Natal Corridor.

The project is expected to create 50 000 jobs, and has stringent requirements for supplier development and skills transfer.

Private sector participation is an important aspect of Transnet’s funding plan. The company has identified PSPs as one of the ways in which the company can broaden its sources of funding for capital investments and get access to private sector skills and expertise.

Transnet has identified a number of projects that can be executed through Private Sector Partnerships (PSPs). These include:

• Blue Train PSP with Sun International;
• Supply Base Facility in Saldanha
• Ship and Rig repair Facilities in Saldanha
• Ship repair facilities in Richards Bay
• Boat building and Ship repair facilities in East London
• Refurbishment and upgrade of agricultural terminals
• The Grootvlei coal loading facility in Mpumalanga;
• Ceres Railway Line
• Mmamatwane common user loading facility

Besides increasing inland container-handling capacity and encouraging migration to rail, the Tambo Springs partnership will help Transnet accelerate investment in logistics infrastructure, improve operational efficiencies and secure adequate commercial returns.

The deadline for submissions is 30 September 2016. Transnet expects to award the contract in the last quarter of the company’s financial year. Please contact UKTI for any further information.

Opportunity closing date

29 September 2016

Value of contract

£100k-1m