South Africa’s Transnet opens bids for Richards Bay Terminal deal

South Africa’s state-owned logistics company, Transnet, has launched the first stage of a process to select a private partner for the Richards Bay Dry Bulk Terminal (RBDBT), a critical export hub in KwaZulu-Natal for commodities including chrome and magnetite.

The company has issued a Request for Qualification (RFQ) with a deadline of August 31. Qualified respondents demonstrating technical expertise, operational experience, and financial capacity will be invited to a subsequent Request for Proposal (RFP) process. A briefing for prospective bidders is scheduled for March 19.

Terminal expansion aims to meet rising commodity demand

Currently, RBDBT handles roughly 16.7 million tons of dry bulk annually, slightly below its 18.5-million-ton capacity. Transnet plans to leverage a private sector participation (PSP) model to increase throughput to 26.9 million tons, positioning the terminal as a regional export powerhouse.

“Given the scale of capital needed and Transnet’s balance sheet constraints, a PSP transaction offers the most practical and sustainable mechanism to unlock investment,” the company said.

Planned upgrades include converting Berth 702 for exports, constructing Berth 802 adjacent to Berth 801, modernizing stockyards, adding tipplers and conveyors, and integrating digital and mechanized systems to improve productivity, reduce vessel turnaround times, and cut demurrage costs.

Strategic focus on chrome and magnetite

Chrome and magnetite, which make up nearly half of current throughput, are identified as primary growth commodities. Rising global demand for stainless steel and the shift toward low-carbon “green steel” production underpin their long-term potential.

Transnet Port Terminals (TPT) will retain a 51% stake in a special purpose vehicle (SPV) that will manage financing, operations, maintenance, and performance improvements under a sublicensing agreement.

Broader private-sector infrastructure push

Transport Minister Barbara Creecy confirmed the PSP initiative in response to President Cyril Ramaphosa’s State of the Nation Address. 

Additional PSP projects are planned for 2026, including the Ngqura manganese export corridor and the Container Corridor concession, both aimed at mobilizing private investment to modernize South Africa’s rail and port infrastructure.

Transnet oversees the country’s rail networks, ports, and pipelines, making it a linchpin in South Africa’s economy. Its “Reinvent for Growth” strategy seeks to address debt, boost operational efficiency, and enhance global competitiveness for the nation’s mining, manufacturing, and export sectors.