Why it Matters
South Africa’s rail reform process is moving beyond network access and into one of the practical constraints facing new operators: rolling stock availability. LeaseCo is intended to give Train Operating Companies access to locomotives and wagons without requiring each operator to own a full fleet from the outset.
The RFP also signals how Transnet plans to bring private capital, technical capability and Transnet Engineering’s OEM capacity into a commercially governed leasing platform. As TRIM allocates additional network slots, the availability of fit-for-purpose rolling stock will be central to whether open access can translate into measurable freight volume growth.
Transnet SOC Ltd has issued a Request for Proposals to two shortlisted bidders for the establishment of its planned rolling stock leasing company, marking the next step in the development of South Africa’s rail reform framework.
The RFP follows the conclusion of the Request for Qualification process launched in April 2025, which attracted 14 submissions. The proposed Leasing Company, known as LeaseCo, is intended to acquire, manage and lease rolling stock for use in domestic and regional rail markets.
Rolling stock access has become one of the key practical issues in South Africa’s rail reform process, particularly as new Train Operating Companies prepare to enter the network under the open access framework being implemented through the Transnet Rail Infrastructure Manager.
LeaseCo is being positioned as a mechanism to improve access to locomotives and wagons without requiring every operator to carry the full cost of rolling stock ownership on its balance sheet. The model is expected to support both established and emerging operators by improving asset utilisation and increasing the availability of fit-for-purpose rolling stock.
According to Transnet, the business will be structured as a commercially viable and independently governed leasing entity. Transnet will contribute a ring-fenced fleet of rolling stock assets as equity, together with Original Equipment Manufacturer capabilities through Transnet Engineering. The private sector majority partner is expected to provide capital, technical expertise and operational capability to revitalise, manage and expand the fleet.
Transnet Group Chief Executive Michelle Phillips said significant unmet freight demand, driven by a shortage of available rolling stock, presents an opportunity for a dedicated leasing entity.
“LeaseCo represents a transformative initiative primed to modernise Africa’s rail system, mobilise private capital, and enhance the reliability of freight logistics. With the significant demand from TOCs, LeaseCo is well-positioned as an appealing investment opportunity,” Phillips said.
Transnet has already begun engaging newly licensed Train Operating Companies to assess rolling stock requirements and said five TOCs have been secured for LeaseCo’s services. Initial engagements indicate market appetite, which is expected to increase as additional network slots are allocated to operators by the Transnet Rail Infrastructure Manager.
The RFP process is another step in the development of a more competitive freight rail environment in South Africa, where access to network capacity and access to rolling stock are both central to the practical implementation of rail reform.
