Transnet seeks contractors to collect, cut, process and transport ferrous scrap across seven clusters for sale to South African steel producers, smelters, foundries and recyclers over five years. Pricing is quoted as a percentage of the Rotterdam metal bulletin, and the arrangement is income-generating for the successful contractor.
Transnet SOC Ltd, through its Transnet Corporate Centre, has issued a Request for Proposal for the sale of ferrous scrap metal arising from its rail, port and operational activities. Scrap is generated through standard operations, obsolescence, end of functional lifespan and irreparable damage, and is concentrated at designated cluster sites across South Africa. The contract runs for five years on an as-and-when-required basis and covers seven clusters: Koedoespoort, Bellville, Uitenhage, Bloemfontein, East London, Germiston and Durban. Each cluster is evaluated and awarded separately to the highest-ranked compliant bidder, and bidders may compete for one or more clusters.
Successful contractors must dismantle, cut, process, load and transport all scrap at their own cost, as Transnet bears no expenditure and the award is classified as income-generating. Bidders must own or have access to cutting, processing and loading equipment, typically an excavator with grab attachment, and must be able to collect all scrap types regardless of condition, including greasy bearings, rusted scrap, rail lengths and rail spring clips. Additional duties include collecting scrap anywhere along the rail network, clearing vegetation to access scrap, offloading wagon contents, decontaminating tankers and wagons, transporting reclaimables to Transnet sites, and separating non-ferrous from ferrous material. Port clusters require reliable skip removal and replacement with no general on-site staging, and urgency is emphasised for clearing scrap at ports and after derailments. Bidders must hold a valid SAPS Second-Hand Goods Dealer registration, a Scrap or Recycling Association registration, an MOU or agreement with a foundry owner or smelter, and health, safety and environmental management plans. Certification for asbestos and hazardous waste disposal, including waste manifests, is required where applicable.
Evaluation follows a staged process: administrative and substantive responsiveness, a 70-point technical threshold, then scoring of 90 points for price and 10 points for specific goals, with preference points for B-BBEE level, subcontracting of at least 30 percent and job creation. Scrap must be consumed within the South African steel industry and may not be exported or resold to other parties, and Transnet will request evidence of domestic consumption. Pricing is quoted as a percentage of the Rotterdam metal bulletin, and the contractor must provide a bank guarantee or pass credit vetting, with an estimated guarantee of around R15 million per cluster. The benefits to Transnet include maximised scrap revenue, reduced logistical burden, streamlined disposal on a cluster basis and compliance with environmental legislation. Interested bidders should review the RFP and annexures on the National Treasury e-Tender Portal and the Transnet e-Tender Submission Portal before the closing date of 30 November 2026.
Scrap dealers and recyclers with cutting, loading and transport capacity, primary steel producers and smelters, and foundries that can consume ferrous scrap in South Africa. Bidders must have SAPS second-hand goods dealer registration, a foundry or smelter MOU, equipment or access to it, and the ability to meet the bank guarantee or credit vetting requirements. Businesses that can supply sub-contracting (minimum 30 percent) and job creation commitments, and that operate in or near the listed clusters, are particularly well placed. Companies must be able to comply with NEMA, the Waste Act and railway safety requirements.
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