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Having rolled-out 67 000 smart meters across eight pilot municipalities in 2024/25 as part of an effort to improve revenue management at municipalities that owe Eskom billions in outstanding arear debt, the National Treasury reports that more than 77 780 such meters are expected to be installed across 11 municipalities this year.

It was reported earlier in 2025 that municipality arear debt owed to Eskom had breached the R100-billion mark.

Deputy director-general for intergovernmental relations Ogalaletseng Gaarekwe reports that the aim is to install 250 000 meters over a three-year horizon to 2027/28, with indirect grant funding of R2-billion having been approved for the programme.

The 19 municipalities currently accredited for the smart-meter scheme are drawn from the 71 municipalities that are also participating in a separate debt-relief initiative; one that enables them to write off legacy debt owed to Eskom by meeting various conditions, including a ringfencing of payments owed to the utility and keeping their current accounts up to date.

The first eight municipalities selected for the R500-million smart-meter pilot in 2024/25, were among those with the largest outstanding debts owing to Eskom, and included Bela-Bela, Dihlabeng, Emalahleni, Kgetlengrivier, Makana, Modimolle-Mookgophong, Naledi, and Sol Plaatje.

MUNICIPALITIES IN FOCUS

Ten of the second cohort have been drawn from the best performers in meeting the conditions of the debt-relief programme, while one is under national intervention, and they include Amahlathi, Cederberg, Dawid Kruiper, Endumeni, Enoch Mgijima, Kannaland, Mogale City, Matzikama, Ramotshere Moiloa, Raymond Mhlaba, and Ubuntu.

No metropolitan councils have been included but National Treasury local government budget analysis director Sadesh Ramjathan reports that such councils are entitled to access the service providers selected under its transversal tender for smart meters, known as RT-29, should they have funding to do so.

The service providers selected under RT-29, which was overseen by the National Treasury's chief procurement officer in 2023, include African Metering Solutions, Cigicell, Conlog, Isandiso, Landis + Gyr, MTN and Vodacom.

These service providers are installing accredited meters that are manufactured locally and, while electricity metering is being emphasised, the RT-29 transversal tender also includes smart water meters.

Some R650-million has been set aside for 2025/26, R800-million for 2026/27 and R836-million for 2027/28.

None of the municipalities receive funding directly for the smart meters, with the selected service providers being paid only once there is evidence that the meters have been installed and fully integrated into the beneficiary municipality's revenue management system.

Replicas of these municipal back-office revenue management systems have been created at a monitoring centre housed at the South African National Energy Development Institute, or Sanedi, which has also been appointed as the project manager for the programme.

EARLY ANALYSIS POSITIVE

Ramjathan says it is premature to provide firm information on whether municipalities where smart meters have been installed are meeting the objectives of improved revenue management, higher revenues and reduced arrear debt owing to Eskom.

However, he reports that the initial analysis arising from two municipalities - Bela-Bela and Sol Plaatje - is promising.

Adjustments have also been made to the way implementation takes place since the pilot, with a far greater emphasis being given to higher levels of community engagement ahead of any actual installations taking place.

This, in an effort to persuade those showing resistance to the meters that the technology is not simply about recovering higher revenues, but also includes customer benefits such as an improved service, greater billing accuracy and transparency, with customers able to monitor their consumption in real time on their cell phones.

The smart meters are ...

The Energy Intensive Users Group (EIUG) has called for a reopening of the most recent electricity tariff determination, arguing that a R54-billion behind-closed-doors settlement between the regulator and Eskom has created fresh price-path uncertainty.

This uncertainty was also being amplified by the fact that the liquidation schedule for several regulatory clearing account (RCA) allowances, also running into billions of rands, had not yet been finalised. These RCA approvals entitle Eskom to claw back revenue foregone in previous periods in future tariffs.

The EIUG is made up of South Africa's largest industrial and mining companies, which collectively consume about 40% of the country's electricity, while employing more than 650 000 people in entities that collectively generate 20% of South Africa's GDP.

In some cases, electricity costs constitute up to 40% of their production costs, and tariff hikes and volatility over the past two decades have been major factors contributing to some operations shutting down or cancelling investments. Several large resources firms have also initiated retrenchment processes in recent weeks, especially in the ferrochrome, steel and iron-ore sectors.

The EIUG noted an eightfold rise in Eskom's average electricity price from 2008 to 2024, from 19.9c/kWh to 165.43c/kWh, while electricity sales dropped by nearly 20% from 224 TWh to 183 TWh. Demand from large industrial and mining companies fell by 23% over the same period, while the number of customers in the sector declined by 709, or 17%.

The immediate trigger for EIUG's call for a reopener, however, is the shock out-of-court settlement between Eskom and the National Energy Regulator of South Africa (Nersa), which acknowledged errors in its calculation of tariffs for the 2025/26, 2026/27 and 2027/28 financial years under the sixth multiyear price determination, or MYPD6.

The first R35-billion of the settlement amount would be liquidated in the latter two financial years, resulting in an electricity tariff hike of 8.76% on April 1 next year instead of the 5.36% approved in January, and 8.83% in the following year, instead of 6.19%.

The balance of the amount would be recovered by Eskom in subsequent financial years, but no liquidation schedule has been provided by the regulator.

On April 1 this year, electricity tariffs rose by 12.74% in line with the MYPD6 determination.

However, the EIUG highlighted several RCA approvals, some also the result of legal action against Nersa by Eskom, which could result in even bigger hikes over the coming years.

This included the RCA balance of R8.1-billion already declared for the 2021/22 financial year, with Eskom in the process of finalising its 2023/24 RCA application.

The EIUG noted that both the R54-billion settlement and the outstanding RCAs would increase the tariff by more than 4% over the original MYPD6 decision, and were thus sufficient to reopen the MYPD6.

"Such a review may reset the base and afford the industry a starting point for a predictable price path," EIUG CEO Fanele Mondi said, arguing that the MYPD6 decision of January had "brought a glimmer of hope" that the country was moving away from high increases and uncertainty.

He also raised serious concern over the way Nersa had gone about reaching the settlement with Eskom.

"[This] behind close doors settlement of R54-billion is a complete shock to consumers.

"It is not only about the quantum of the additional revenue but also about a lack of transparency on a decision that has fundamental consequences for consumers who have to bear this settlement," Mondi said.

He expressed particular concern that the implementation period had not been consulted, despite its material consequences for customer that were already facing serious financial constraints.

"Making matters even worse is that some operations already see as high as 19% increase against the 12.74% Nersa decision [for the 2025/26 financial year] due to the changes in the Retail Tariff Plan."

...

A public hearing into the National Transmission Company South Africa's (NTCSA's) application for a market operator licence will be hosted by the National Energy Regulator of South Africa (Nersa) on September 30.

The licensing of the NTCSA as the independent market operator is viewed as a key milestone for the launch of the South African Wholesale Electricity Market (SAWEM), which has been tentatively set for April next year.

Another important milestone will be the approval of the Market Code, which is expected to be submitted to Nersa for its approval after a final consultation session to be held on the draft Market Code, which is set to take place on September 11.

The launch of the SAWEM itself is viewed as another step in the creation of a competitive electricity market in line with the Electricity Regulation Amendment Act, which came into force earlier this year.

Although full competition is unlikely at its inception, the launch of SAWEM is anticipated to reinforce the structural transition under way. This, from an industry structure hitherto dominated by Eskom and a vertically integrated industry structure to one that progressively opens to include generation competition, and the participation of aggregators and traders.

These structural changes also hinge on the unbundling of Eskom's generation, transmission and distribution entities into separate businesses and progress here is reportedly uneven, with only the NTCSA currently operating with its own board and executive team.

However, the NTCSA remains a subsidiary of Eskom Holdings and there is some uncertainty over whether the transmission assets will be transferred to the NTCSA as it emerges as the independent Transmission System Operator envisaged in legislation.

Nevertheless, preparations for the launch of the SAWEM are continuing, and a SAWEM School has been set up to expose future participants to day-ahead and intra-day trading and the market-balancing components.

Graduation from the SAWEM School has also been made mandatory for participation in the market once it is launched.

In a statement, Nersa confirmed that it received the NTCSA application for a market operator licence on July 25 and that the licence was required in addition to the transmission, trading and import/export licences already approved in favour of the NTCSA.

"If approved, this licence will empower the NTCSA to operate the future electricity trading platform, ensuring its administration is conducted fairly and transparently," Nersa said.

The deadline for the submission of comments and objections has been set as September 22 and the hearing is scheduled to take place virtually between 9:30 and 13:00 on Monday, September 30.

The closing date for registration to participate in the public hearing is September 25, at 16:30.

The hearings come as Nersa is also moving to finalise rules for traders by November and amid heightened scrutiny of the regulator, following its acknowledgement that it made errors in the calculation of Eskom's most recent three-year tariff application.

After Eskom approached the courts to have the decision reviewed, Nersa and Eskom entered into settlement negotiations, which were concluded behind closed doors and in the absence of public hearings.

On August 28, Nersa confirmed a settlement amount of R54-billion and announced that Eskom's electricity tariffs would rise as a result by 8.76% on April 1 next year instead of the 5.36% approved previously, and by 8.83% instead of 6.19% in 2027/28.

Engineering News editor Terence Creamer discusses some of the hot-button issues in the steel sector, including the preliminary determination of steel tariffs; questions about the future of ArcelorMittal South Africa’s longs business; and concern from metals firms about a lack of

The Industrial Development Corporation (IDC) says no decision has been made in relation to further support for ArcelorMittal South Africa's (AMSA's) long-steel business, after the State-owned development financier stepped in earlier this year with funding to avert an immediate wind down of the unit.

However, CEO Mmakgoshi Lekhethe stressed during the group's financial results presentation that the R2.6-billion intervention had helped avert a disruption in the supply of specialty steel to downstream users, especially in the automotive sector.

The funding, which included a R1.68-billion interest-free loan, had also created time and space for those firms to make alternative supply arrangements.

In an interview with Engineering News, CFO Isaac Malevu did not discount the IDC's involvement in further attempts to save the business, including the integrated Newcastle mill, in KwaZulu-Natal.

He also confirmed that the IDC had concluded a due diligence of the business, which had demonstrated that the funding required would be of a scale that could not be carried by the IDC alone.

"The due diligence has shown us that we cannot go it alone; it has to be a collective, collaborative effort," Malevu said.

A broader initiative to salvage the business, possibly involving a strategic equity partner, is being led by the Department of Trade, Industry and Competition (dtic).

Resolution would be required soon, however, given AMSA's indication that it would not sustain the longs business beyond the end of September without further support, or a change to the conditions that had made Newcastle unviable.

The company had also indicated that the shutdown of furnaces would need to be initiated well ahead of that date, as various technical steps were required to preserve the integrity of the plant.

The difficult conditions being faced by the IDC's clients in the metals and mining sector emerged as a major theme of its 2025 financial results, which slumped by over 95% to a profit of R329-million from R7.5-billion.

Impairments surged to R3.8-billion from R119-million in the prior year and disbursements to distressed businesses rose to a record R2.2-billion within an overall disbursement envelope of R16.3-billion.

In addition, dividend investments from the IDC's portfolio of listed investments declined by R2.2-billion as companies such as Kumba Iron Ore, Sasol, and AMSA faced difficult trading conditions.

The IDC saw a reduction of 13% in total assets from R154.6-billion in 2023/24 to R134.5-billion in 2024/25, largely owing to a fair value decline across listed and unlisted investments, which amounted to R16.4-billion.

Malevu told Engineering News that there were signs of recovery in some of the subsectors to which it was exposed, but that the outlook for some of its clients had been negatively affected by the imposition of 30% tariffs on South African exports by the US.

It was working with the dtic to finalise support for those companies whose exports could be affected, especially in the agriculture and automotive sectors.

Sluggish GDP growth, together with lower approvals in the year of R13.4-billion (R17.3-billion), also weighed on the outlook.

It was also keeping a close eye on developments at South32's Mozal aluminium smelter in Mozambique, which faced closure should a new electricity deal not be finalised.

However, Malevu did not expect the level of impairments to be repeated, nor did he expect distributions to distressed firms to be as elevated as they were in 2025.

Lekhethe emphasised the IDC's dual mandate of achieving developmental impact while remaining financially sustainable.

"The IDC's role has to remain that of playing a counter-cynical role in times of trouble, but also of finding new industries of the future that are going to support this economy," she said.

Companies across South Africa's steel value chain are gearing up to submit responses to a preliminary determination by the International Trade Commission of South Africa (Itac) that proposes the implementation of sweeping tariffs on imported steel products.

The preliminary determination, which was gazetted on August 20 for a two-week public comment period, arose from an investigation initiated by Itac in March into the tariff structure for carbon and stainless steel products.

The review came amid indications from ArcelorMittal South Africa that it intended closing its Newcastle mill, in KwaZulu-Natal, partly because of surging imports but also because it claimed it could not compete with mini-mills that were receiving a scrap subsidy. In addition, companies across the steel industry were facing increased import competition, while their competitiveness was being undermined by unreliable power and logistics, and surging utility costs.

The investigation also coincided with the implementation of 30% import tariffs on South African exports to the US, where 50% tariffs on steel had also been instituted.

The review covered products listed under chapters 72, 73, 82 and 83 of the Customs and Excise Act, which includes everything from hot-rolled coil, bars and rods, to tubes, pipes, screws, bolts and garden tools.

Itac concluded that tariffs should be increased to the World Trade Organisation 'bound rate' on products included under 460 tariff codes.

However, it also proposed the creation of additional rebate provisions and said a committee made up of "industry role players and members of the commission" would be formed to advise Itac on steel-related matters.

These hikes would affect all imports arising from countries that do not have a trade agreement with South Africa. In other words, imports from the EU and the Southern African Development Community would not be affected.

An analysis of the preliminary determination conducted by XA Global Trade Advisors shows that the 460 tariff codes affected by the preliminary determination cover yearly imports valued at R51.5-billion and will impact thousands of importers and traders.

MD Donald MacKay said that more than 70% of the tariff codes related to carbon steel products imported under chapters 72 and 73, while 90% of the value of the proposed duty increase was in relation to products included in chapters 73 and 82.

"If Itac increases all the duties to the bound rate, it would add R1.54-billion to the tariff bill for a year," MacKay said during a webinar hosted on the preliminary determination.

He added that 10 845 importers could see their duties increase but said 16 importers, which were not identified, were most at risk, as they accounted for 21% of all steel imports.

The reaction of webinar participants to the preliminary determination was mostly one of anxiety, with many suggesting that it could undermine their manufacturing competitiveness and raise prices for users and consumers.

However, an upstream steel producer expressed support for the intervention, arguing that the industry was in need of protection from a flurry of imports, which was placing their survival, as well as jobs, at risk. The tariffs could also create space for import-substitution.

MacKay welcomed the decision by Itac to allow for further comment on the determination ahead of implementation, describing the move as unprecedented.

However, he said the trade-offs were significant and could result in casualties and, thus, suggested that Itac consider holding public-interest hearings before making a final decision.

That said, he urged those affected by the determination to provide comment ahead of the September 3 deadline, or apply to Itac for an exemption from the deadline to provide sufficient time to compile a comprehensive response.

In its Gazette notice, Itac stress that no final decision had been made and committed to considering comments from members of the public before making a final determination.

No timefram...

Concern continues to be raised over the technical and financial criteria being used to prequalify bidders for South Africa's inaugural independent transmission project (ITP) tender, which critics warn will marginalise domestic industry - notwithstanding a stipulation that there should be a minimum 49% South African equity participation.

Government has initiated a two-stage ITP procurement process, with the request for qualification (RFQ) documentation currently available for a non-refundable fee of R150 000 and with a submission deadline of September 23 having been set.

Qualifying consortiums will then be invited to respond to a request for proposals (RFP), which will be released after the prequalified bidders are named in November. Government anticipates setting a May bid submission deadline for the tender.

The prequalified entities will bid to build 1 164 km of powerlines and 2 630 MVA of transformation capacity across seven corridors during what has been termed 'Phase 1'.

It is anticipated that a build, operate, own and transfer model over a term of between 25 and 30 years could be used. But the nature of the procurement model and the term will be made known only once the RFP is released, alongside how a fee-based Credit Guarantee Vehicle will be employed to derisk the projects in the absence of government guarantees.

The infrastructure is expected to unlock 3 222 MW of new renewables generation, especially in the Northern Cape and North West provinces, with subsequent and larger ITP procurement rounds anticipated thereafter.

The Independent Power Producer Office (IPPO), which is overseeing the procurement process, hosted a virtual conference for potential participants on August 26 that attracted more than 660 participants.

The conference was addressed by Electricity and Energy Minister Dr Kgosientsho Ramokgopa, who again underlined government's desire to use ITPs to accelerate the roll-out of grid infrastructure, which was emerging as a physical constraint to adding new generation.

Given the scale of the investments to be built by both private ITP consortia and the National Transmission Company South Africa (NTCSA) over the coming ten years, Ramokgopa said government aimed to use the programme to stimulate domestic capability and industrial capacity.

The NTCSA's Transmission Development Plan envisages the construction of 14 500 km of new powerlines and 133 000 MVA of additional transformers by 2034 at a cost of about R440-billion.

PREQUALIFICATION FRAMEWORK

During the online conference, several questions were raised about the qualifying criteria in the RFQ, including a criteria that project companies demonstrate prior contracting experience in relation to at least three ITP transmission line and substation projects that had been built in the past 15 years.

While the RFQ is seeking to prequalify project companies only, it has requested some demonstration of project company's experience with engineering, procurement and contractor entities, or EPCs, that have designed, procured, constructed and commissioned ITP powerlines and substations.

In addition, a prequalifying project company would need to demonstrate that it had operations and maintenance contractor experience in relation to at least three extra high voltage powerlines and substations.

Given that Eskom and now the NTCSA has hitherto undertaken all transmission infrastructure development in the country, there is some concern that domestic entities are unlikely to be prequalified as the main project sponsors and that first ITPs will, thus, be controlled by foreign companies.

There were also questions about what the local content requirements would be, given that, while the Public Procurement Act was in force, regulations in relation to the designation of specific components such as towers, cables and other equipment had not been developed, with only interim rules in place.

This point was also raised at a previous event focusing on the TDP by Steel and Engineering In...

Sasol CEO Simon Baloyi has confirmed that the JSE-listed group has applied to the National Energy Regulator of South Africa (Nersa) for an electricity trading licence, and is also planning to take equity positions in renewable-energy projects in future.

In an interview with Engineering News, which came as Nersa moved to finalise trading rules and Eskom mounted a legal challenge against the regulator's decision to license five domestic traders in 2024, Baloyi said a trading licence would offer it flexibility as a large procurer and potential direct investor in renewables.

"For small and medium enterprises, we already have a JV with Discovery called Ampli Energy.

"Sasol is applying for a licence to sell to big corporates, which Ampli Energy doesn't deal with," Baloyi explained, adding that it already supplies other utilities, such as steam and water, to companies that operate on its sites.

He argued that a trading licence would provide Sasol with greater agility as prices fluctuated in a future competitive market, and as it considered large electricity-intensive investments (such as electrolysers to produce hydrogen) that would seek to take advantage of periods when prices could turn negative.

For the immediate future, however, the group would seek to increase the supply of renewable electricity to its own fuels and chemicals operations, both to decrease its carbon emissions as well as to lower the cost of supply.

While it is persisting with its carbon-intensive process of producing gas from coal, which it then uses to produce fuels and chemicals, Sasol has announced plans to "turn down" coal-fired electricity plants to support its decarbonisation and replace these with renewable electricity.

Speaking during an earlier results presentation, CFO Walt Bruns reported that much pressure was being placed on the team responsible for introducing renewable electricity to meet the emission reduction roadmap, but also because "those electrons are value accretive versus the Eskom alternative".

Sasol had concluded power purchase agreements with independent power producers (IPPs) for 920 MW of wind and solar PV electricity and had set a goal of securing 2 000 MW by 2030.

Baloyi told Engineering News that it would not seek controlling equity but that it would take up positions in IPP projects in future, noting that Sasol "will always have a home for electrons".

He also announced to stakeholders that progress was being made with government on the prospect of "recycling" carbon tax revenues towards energy-transition projects and that the policymaker had been receptive to its ideas.

"There's a stronger collaboration between government and businesses that is enabling an open and solution-focused dialogue that will unlock the energy transition in South Africa.

"We are also seeing positive momentum in the policy and regulatory space.

"This includes constructive engagement on the carbon tax framework and a positive policy signal for carbon tax recycling," Baloyi said during the presentation.

Energy and chemicals group Sasol reports that construction of its coal destoning plant has been completed and that the facility, which should be ramped up to full production by December, is producing coal with a 'sinks' content (rock fragments or other impurities) of between 0% and 1.5%.

The brownfield project has involved a repurposing of the Twistdraai export coal plant and an investment of less than R1-billion.

It is part of the JSE-listed group's strategy to address persistent coal quality problems that have negatively affected gasifier yields and caused mechanical damage.

Output at Sasol's Secunda Operations, in Mpumalanga, has in turn been negatively affected, with the facility having produced 6.7-million tons in the year to June 30, 2025 - an outcome that was below targeted volumes of between 6.8-million and 7-million tons.

CEO Simon Baloyi told Engineering News in an interview that the 10-million-ton-a-year destoning plant would reduce the average sinks content of coal being used by the gasifiers to between 12% and 14% once material from the plant was blended with coal from Sasol's own mines and that which it bought in from other miners.

It will also enable Sasol to reopen sections at certain mines that were closed owing to poor quality, and enable it to progressively decrease its purchases of third-party coal.

However, he said the group would continue to buy coal for quality, quantity and cost reasons and would be looking to replace volumes currently being purchased under a contract with Thungela Resources' Isibonelo colliery with a similar long-term contract.

During its 2025 financial year, Sasol produced 28.2-million tons of coal, down from 30.2-million in the prior year, and made external purchases of 10-million tons (9.2-million tons).

The destoning plant would treat coal from Sasol's Bosjesspruit and Thubelisha, where the sinks content was sometimes as high as 20%, before being blended to ensure that the average sinks content did not exceed the stated range.

The expectation is that the yields from the 74 gasifiers that Sasol typically operates at any one time will rise, while also improving the overall mechanical integrity of the gasifiers.

"In other words, the amount of gas that comes out of a gasifier will go up and we also expect an availability benefit, which you should see in the Secunda volumes, which is the true test for us," Baloyi said.

Sasol is aiming to produce between 7-million and 7.2-million tons at Secunda in its 2026 financial year and is targeting to sustain output of about 7-million tons by 2030.

However, it has indicated that yearly volumes from its Secunda liquid fuels refinery, which has been fully impaired, will fall to 6.4-million tons from 2034 as natural gas from Mozambique is depleted.

GAS CLIFF?

The tapering of gas volumes from Mozambique will be felt far earlier by domestic gas customers, with Sasol having announced that supply will be halted in 2028; a stoppage that has come to be known as the 'gas cliff'.

The 60 PJ of gas consumed domestically would represent between 10% and 15% of the yearly output from the gasifiers, Baloyi indicated.

He confirmed with Engineering News that Sasol remained committed to supplying domestic customers to 2030, but with methane-rich gas (MRG) produced by the Secunda gasifiers.

The price of MRG would be higher, however, and Sasol would seek to justify these prices in a future application to the National Energy Regulator of South Africa (Nersa).

Its submission to Nersa for the 2027 financial year would include MRG and the regulator would need to make a pricing determination.

He also insisted that MRG, which was being diverted from being used by Sasol internally to produce fuels and chemicals, had to be viewed as a bridging solution ahead of the importation of liquefied natural gas (LNG).

Sasol had already determined that it would be uneconomic to use LNG in its own production processes, but was a strong advocate of supplementing existing domestic demand...

Transport Minister Barbara Creecy has announced that 11 of the 25 private train operating companies (TOCs) that applied to operate routes on Transnet's rail network have met the requirements to do so and will now enter into contract negotiations to enable them to gain access to the network and begin operating the routes.

The announcement represents a significant step in opening South Africa's freight rail network, which has hitherto been monopolised by State-owned Transnet, to third-party operators.

This change is catered for in the country's rail policy and has been facilitated by the recent vertical separation of Transnet's rail business into the Transnet Freight Rail Operating Company and the Transnet Rail Infrastructure Manager (TRIM), which published the Network Statement that created the operating and tariff framework for the entry of private TOCs.

The inaugural application process for slots opened in December following the publication of the Network Statement and closed in February. It was followed by an evaluation process that culminated in the Minister's August 22 confirmation of the first 11 successful TOC applicants.

Creecy confirmed during the briefing that these applicants had applied for a total of 41 routes across six corridors, including:

The North Corridor, where six new entrants applied for 15 routes for the transportation of coal and chrome;The Iron Ore Corridor, where one new entrant had applied for one route for transportation of iron-ore;The Cape Corridor, where two new entrants applied for two routes for the transportation of manganese;The Northeast Corridor, where six of the TOC applicants had applied for 16 routes for the transportation of coal, chrome, magnetite, fuel, and containers;The Central Corridor, where one new entrant applied for two routes for the transportation of coal, containers (manganese); andThe Container Corridor, where four new entrants applied for five routes for the transportation of containers, coal, and sugar.

The identities of the successful TOC applicants, their shareholders and the routes for which they had applied were not immediately disclosed.

However, Transnet CEO Michelle Phillips confirmed that letters had been sent to these TOCs indicating that they could now enter into a commercial process with Transnet to finalise an access agreement.

Once these negotiations were finalised the names of the TOCs would be released, alongside details of their routes and the commodities that would be transported.

Durations of the allocations range from one to 10 years, and operating companies can commence with operations once the contract conditions have been addressed.

Phillips revealed that one of the TOCs had indicated that it should be in a position to begin operating in the second half of 2026, while others had stated that they were likely to begin operating only in 2027 or 2028.

Letters had also been sent to the unsuccessful applicants explaining reasons for the decision, and to indicate that TRIM would be running an ad hoc process under the same Network Statement, or version three, and that they would be entitled to submit revised applications, alongside new applications, during the 2025/26 timetable.

A date of publication of Volume 4 of the Network Statement would be announced by the Department of Transport, together with a timeline for the opening of applications for available slots for the 2026/27 timetable.

Phillips confirmed that some of the TOCs had applied to lease surplus rolling stock from Transnet, which was also in the process of setting up a new partnership for a leasing company, dubbed LeaseCo. However, it was also possible that the TOCs would source rolling stock elsewhere.

She also stressed that the TOCs were aware of the poor state of parts of the network on which they had applied to operate, and that they would, thus, be accessing the network at their own risk.

That said, Transnet had existing plans and capital budgets for upgrading and maintaining the network, ...