In an effort to rebound from its worst year in a decade owing to logistical challenges. The South African rail behemoth Transnet said on Tuesday that it was seeking a partner to acquire and lease rolling equipment to rail operators.
A shortage of locomotives, spare parts, and preventive maintenance has made it difficult for Transnet, a state-owned logistics corporation, to satisfy the demand for freight rail services.
In response to “domestic and regional demand,” the company has issued a statement seeking a business partner to assist it to acquire and lease rolling stock.
According to mining titan Anglo American Plc and other mineral exporters, Transnet’s poor performance has cost private firms billions of rand. They have advocated the formation of public-private partnerships with Transnet in order to overcome the logistical problems.
Last year, as part of a government drive, to expand rail capacity, Transnet permitted private rail operators to oversee a segment of its freight train network. Two private firms out of a total of sixteen submitted applications for the positions, suggesting investors’ lack of enthusiasm.
For the fiscal year ending in March 2022, Transnet moved 173 million tonnes of cargo, a decrease from the previous year’s 183 million tonnes. This was the worst result in a decade for the firm.
