Leasing of TRANSNET trim siding 800805 (mica) — 10-Year term, limpopo

1.1 On 1 October 2024, in line with the Rail Reform mandate, the Transnet Freight Rail (TFR) existed

as a vertically integrated operating division of Transnet and was vertically separated into TFR, as

a Train Operating division and the Transnet Rail Infrastructure Manager (TRIM) the separate

operating division responsible for the rail network and associated rail infrastructure, notably the

sidings portfolio.

1.2 The sidings portfolio is a key enabler to connect to the core network from road to rail and a strategic

and productive asset. It is a vehicle for economic development, service delivery and transformation.

TRIM is mandated to ensure adherence to the Rail Reform mandate set out in the National Rail

Policy, 2022 and the Roadmap for the Freight Logistics System in South Africa, 2023.

1.3 In the light of the above, TRIM set out to review the processes for leasing / letting TRIM

sidings/facilities to ensure the effective utilisation of these properties as strategic enablers. TRIM

has also implemented the necessary policies and governance structures to ensure that sidings are

awarded in line with the TRIM strategy.

1.4 These includes but not limited to a process that:

1.4.1 Ensures effective management of TRIM Properties as Strategic Enablers for Rail Logistics

Solutions through diligent positioning of these to compliment an end-to-end efficient

logistics service to the market.

1.4.2 Works with the private sector to unlock investment focused on improved efficiency in the

supply chain, reducing complexities and the cost of doing business to enable volume

growth from road to rail.

1.4.3 Ensures sidings enable the TRIM mandate on effective network allocation principles.

1.4.4 Encourages sustainable development and community upliftment.

1.5 TRIM is therefore embarking on an open market process for Proposals for leasing of

sidings/facilities to allow all sectors to have open access to compete for the lease of sidings.

2. General

2.1 The successful bidder must agree to sign a Lease Agreement with TRIM. The basis for negotiation

will be the TRIM Lease Agreement.

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

2.2 The sidings are leased primary for the purpose of storing, loading onto and offloading from rail

wagons, and movement of cargo to facilitate the transportation of such cargo by the Lessee or

contracted Train Operating Company.

2.3 The dominant purpose of the leased siding should be reserved for facilitating the transportation of

cargo by rail.

2.4 The process to allocate rail capacity forms part of the slot capacity allocation process (refer to the

latest Network Statement for more information) and is allocated independently from the conclusion

of lease agreements for sidings.

2.5 All sidings are leased on an “as is” basis.

2.6 It remains the lessee’s responsibility to develop the facility and secure the requisite volumes

required that underpins the investment within the current transport logistics systems, governances

and legislative prescripts. The facility’s scalability to the transport systems operating capabilities

will be dealt with during contract negotiations. Therefore, proposals and operating models should

respond to the siding footprint.

2.7 Notwithstanding Clause 2.4 above, the Lessee remains obligated to honour and meet the existing

TRIM Slot allocation train paths applicable to the siding with third parties/Train Operating

Companies (TOCs).

2.8 Where relevant, the successful bidder appointed to lease the siding is responsible to directly

conclude and/ or manage contracts with TOCs or cargo owners who have contracted with TOC/s.

2.9 Successful lessees are required, from time to time and upon due notice being provided, to adhere

to any changes to TRIM management policies, procedures or processes which may be applicable

to a Lessee.

3. TRIM Revenue Generation

3.1 The successful lessee shall pay TRIM the monthly rental.

3.2 A percentage of turnover negotiated with the winning bidder. Should the parties fail to reach

agreement on the percentage turnover, TRIM reserves the right to disqualify the winning bidder

and negotiate with the reserve bidder.

4. Scope of Requirements

4.1 Siding information: Refer to Annexure A: TRIM Siding Profile.

4.2 Lease Tenure

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.2.1 Bidders need to submit a Request for Proposal for a lease of ten (10) years.

4.2.2 For the avoidance of doubt, the 10-year lease period is the operational period and excludes

an agreed period required for the mobilisation, establishment, rehabilitation, development,

upgrading and/or construction of the siding which is relevant to make a siding operational.

4.3 Experience, Track Record and Expertise

4.3.1 Bidders will be scored on the following information obtained from the portfolio of evidence:

4.3.1.1 Expertise and experience (years) of the company in integrated logistics

planning and operations, warehousing, commercial, industrial engineering and

continuous improvement of the end-to-end supply value chains; and

4.3.1.2 Collective years of experience in integrated logistics planning and operations,

warehousing, commercial, industrial engineering and continuous improvement

of the end-to-end supply value chains of directors, shareholders and/or owners,

or the relevant experience of the lead members of a consortium or JV.

4.3.2 Company Experience

4.3.2.1 Bidders are required to provide a company profile of their organisation,

including their holding company (if relevant).

4.3.2.2 Bidders need to demonstrate relevant logistics experience and know-how in

integrated logistics planning and operations, warehousing, commercial,

industrial engineering and continuous improvement of the end-to-end supply

value chains.

4.3.2.3 Relevant experience includes but is not limited to demonstrated experience in

planning, coordinating, managing or operating logistics and supply chain

activities involving the movement, stockpiling, handling or distribution of goods.

4.3.2.4 Bidders must complete Annexure Q: Company Experience Summary to

demonstrate this experience.

4.3.2.4.1 The table contained in Annexure Q must be completed for each

contract that the bidder intends to be credited for.

4.3.2.4.2 Information provided in Annexure Q must be verifiable through

relevant contact details, contracts executed and must form part

of the Bidder’s Bid Response.

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.3.2.4.3 Bidders must provide at least one reference letter from

customer(s) to whom they had provided any of the services listed

above. These letter(s) should clearly illustrate the scope of

service provided, number of years of service offered and contact

details of company used as reference.

4.3.2.4.4 The reference letter(s) must contain the letterhead of the

customer and must be signed by an authorised representative.

4.3.2.4.5 The contact details of the person who could be possibly

interviewed by TRIM as part of the due diligence process should

be minimum at management level.

4.3.2.5 Failure to submit the Annexure Q as well as the letter of reference may result

in a score of 0 for the bidder.

4.3.3 Directors, Shareholders and/ or Owner Experience

4.3.3.1 Bidders will be scored on the collective relevant experience of directors,

shareholders and/or owners, or the experience of the relevant lead members

of a consortium or JV.

4.3.3.2 Bidders need to provide proof that they are directors, shareholders and/or

owners of the bidding entity.

4.3.3.3 For purposes of this requirement, this shall be determined according to the

legal form of the Bidder, as follows:

4.3.3.3.1 Private Company – ownership shall mean the percentage

shareholding held by shareholders;

4.3.3.3.2 Partnership – incorporated practice, or similar entity without

shareholders – ownership shall mean the percentage equity

participation held by equity partners or members having an

economic interest in the partnership;

4.3.3.3.3 Trust or similar arrangement – ownership shall be determined

with reference to the beneficiaries or persons exercising effective

control as appointed trustees, as applicable; and

4.3.3.3.4 Consortiumorunincorporatedjointventure- ownership of each

consortium or joint venture member.

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.3.3.4 The Bidder shall submit supporting evidence appropriate to its legal form,

including, where applicable:

4.3.3.4.1 CIPC Disclosure Certificate;

4.3.3.4.2 Share Register;

4.3.3.4.3 Shareholding Structure;

4.3.3.4.4 Register of Equity Partners or Members (for partnerships or

similar entities);

4.3.3.4.5 Trust Deed or equivalent governing instrument (where

applicable); and

4.3.3.4.6 Identity documents or other proof of ownership or equity

participation, where applicable.

4.3.3.5 For each director, shareholder and/or owners or the relevant experience of the

lead members of a consortium or JV that the bidder wants the claim for, the

following information needs to be submitted:

4.3.3.5.1 Detailed Curriculum Vitae (CV);

4.3.3.5.2 Annexure R: Individual Experience Summary; and

4.3.3.5.3 At least one (1) letter of reference.

4.3.3.6 Curriculum Vitae should provide an overview of an individual career and

qualifications.

4.3.3.7 Annexure R contains a more detailed list of the experience of a single individual.

4.3.3.7.1 Annexure R should expand on the information provided in the

Cv.

4.3.3.7.2 Each relevant role that an individual intends to be credited for

should be included.

4.3.3.8 TRIM recognises that legitimate changes in ownership, directorship,

management, or joint venture participation may occur during the lease term.

However, where specific directors, shareholders, owners, or JV members have

materially contributed to the bidder's score, TRIM may require replacement of

similar for continuity of the business.

4.3.3.9 Any material change to their participation must be disclosed to TRIM and

approved obtained in writing.

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.3.3.10 TRIM reserves the right to review and perform a due diligence to authenticate

company or individual experience.

4.4 Safety, Environment Management, Risk Management and Business Continuity

Management Requirements

4.4.1 Legislative Compliance

4.4.1.1 The successful bidder shall, at all times, comply with all applicable laws,

legislation, regulations, by-laws, standards, codes and statutory requirements

relevant to the performance of the services and/or obligations contemplated in

this RFP and any resulting Agreement, as amended or replaced from time to

time.

4.4.1.2 The successfully bidder will be required commit to comply with relevant Laws

and Regulations and any other newly promulgated related laws post signing

Lease agreement.

4.4.1.3 In addition to legislative requirements, the successful bidder will be required to

comply with all applicable TRIM maintenance standards.

4.4.2 Environmental Management

4.4.2.1 The successful bidder will be required to obtain all environmental approvals

(i.e. authorisations, air emission licenses and/or permits) relevant to the

proposed siding activities before commencing with operations.

4.4.2.2 Where relevant, the successful bidder will be required to obtain Water Use

Licenses through relevant authorities, i.e., Department of Water and Sanitation.

Such licence(s) must be inclusive of all relevant water uses taking place on site

(i.e., uses c, i, h, and g as it relates to section 21 of the National Environmental

Management Act, 1998).

4.4.2.3 The siding will have to be managed in accordance with section 28 of the

National Environmental Management Act, 1998, as amended and related

provisions in other applicable legislations.

4.4.2.4 Environmental Incidents must be reported in accordance with section 30 of the

National Environmental Management Act, 1998, as amended and related

provisions in other applicable legislations.

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.4.2.5 After concluding the lease and before operations, the successful bidder must

provide and implement an Environmental Management Plan covering an

assessment of environmental risks and risk mitigation measures. The

requirements for this Environmental Management Plan are outlined in Annexure

L.

4.4.2.6 The Successful lessee shall, at its own cost and prior to commencing operations,

obtain and maintain all licences, permits, approvals, registrations and

authorisations required by applicable legislation and regulatory authorities to

lawfully operate the siding. The Successful Bidder shall further ensure ongoing

compliance with all applicable environmental, health and safety, railway safety

and other statutory requirements to facilitate a seamless transition of

operations and avoid any interruption to rail services provided by TRIM and

Train Operating Companies.

4.4.2.7 If the proposed siding use will require a Water Use License, the successful

bidder is required to ensure business continuity in the time taken to obtain the

Water Use License. This will be addressed during contracting.

4.4.3 Risk Management

4.4.3.1 After concluding the lease and before operations, the successful bidder must

provide an assessment of risks and risk mitigation measures, other than

environment risks.

4.4.3.2 This Risk Management Plan will cover core risk management elements. These

include business and project risk assessment, development and maintaining of

a risk register, applied business and project risk assessment methodology, risk

mitigation strategies and actions.

4.4.3.3 The Transnet Risk Assessment methodology is attached as Annexure M, and

the aspects considered during an evaluation process are in Annexure N. The

successful bidder will need to submit and implement a Risk Assessment Plan

compliant with these requirements prior to beginning operations.

4.4.4 Business Continuity Management

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.4.4.1 Prior to beginning operations, the successful lessee must submit a Business

Continuity Management Plan (BCM Plan) with an assessment to ensure

compliance to the Disaster Management Act (as amended from time

to time).

4.4.4.2 The requirements for the BCM Plan that the successfully bidder will have to

submit and implement are outlined in Annexure O.

4.4.4.3 This plan will cover the successful bidder’s BCM Policy Framework; Business

Continuity Plan (BCP); Business Impact Assessment (BIA) and Business

Continuity Management Risk Assessment Methodology together with

application.

4.4.5 Health and Safety Management

4.4.5.1 The successful lessee must comply with the Occupational Health and Safety

Act, (as amended or replaced from time to time) (the “OHS Act”),

any regulations made thereunder and any other applicable health and safety

legislation.

4.4.5.2 Prior to the start of operations, the successful lessee will have to submit a

Health and Safety Checklist as contained in Annexure P.

4.5 Financial Capacity

4.5.1 Proof of funding

4.5.1.1 Bidders are required to provide proof of funding covering the bidder's declared

capital investment commitment for the siding.

4.5.1.2 Funding can be a combination of debt and equity funding. Debt funding can be

confirmed, provisional or conditional.

4.5.1.3 Requirements to verify debt funding

4.5.1.3.1 Debt funding can be obtained from financial institutions, funding

institutions, private funders or investment agencies,

4.5.1.3.2 The bidder must provide a confirmation letter from the institution or

individual, stating the amount and whether the funding is committed

or conditional; or

4.5.1.3.3 where funding is conditional, a written commitment letter stating the

specific conditions..

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.5.1.4 Requirements to verify equity funding

4.5.1.4.1 If self-funded, bidders must provide

4.5.1.4.1.1 their audited or if relevant, otherwise independently

verified annual financial statements; and

4.5.1.4.1.2 a bank confirmation letter, confirming the cash or facility

balance supporting those financials.

4.5.1.4.2 If equity funding is from other equity partners (including holding

companies or shareholders), bidders must provide

4.5.1.4.2.1 written confirmation of the undertaking to fund the

investment;

4.5.1.4.2.2 written confirmation of the amount of funding available to

this project;

4.5.1.4.2.3 the equity funder’s audited or if relevant, otherwise

independently verified annual financial statements; and

4.5.1.4.2.4 a bank confirmation letter, confirming the cash or facility

supporting those financials.

4.5.2 Financial Viability Evaluation: Financial documentation requirements

4.5.2.1 Companies in existence for more than three years:

4.5.2.1.1 Bidders must provide audited Annual or if relevant, otherwise

independently verified Financial Statements for the last three

completed financial years.

4.5.2.1.2 Where a bidder is not legally required to have audited financial

statements, independently reviewed financial statements or

other suitable financial information must be submitted together

with an explanation confirming why audited financial statements

are not available.

4.5.2.1.3 Management accounts not older than three months where the

latest audited financial statements are more than six months old.

4.5.2.1.4 Financial Statements may come from either the bidding

company, the Holding Company or the Group.

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.5.2.1.5 Where a bidder relies on holding company or group financial

statements, the following shall be submitted as part of the bid

response:

4.5.2.1.5.1 A letter of consent from the Parent Company; and

4.5.2.1.5.2 a signed Letter of Financial Support.

4.5.2.2 In the case of an entity that has been in existence for less than three years,

the bidder must provide

4.5.2.2.1 Audited or if relevant, otherwise independently verified financial

statements for the period during which it has operated

(provisions regarding audited financial statements stated above

will apply); and

4.5.2.2.2 Management accounts not older than three months where the

latest audited financial statements are more than six months old.

4.5.2.3 In addition to financial statements as described above the bidder must supply

details of any pending litigation or insolvency proceedings.

4.5.2.4 When contracting, TRIM may request the bidder the following additional

financial information:

4.5.2.4.1 A bank confirmation letter.

4.5.2.4.2 Details of available funding facilities or working capital available

for contract execution, where applicable.

4.5.2.4.3 Any parent company guarantee or financial support undertaking,

where applicable.

4.5.2.5 The above documents will be verified and if it does not meet the TRIM financial

viability requirements can lead to disqualification

4.5.2.6 The winning bidder will be subject to a Credit Risk Assessment (risk grade) to

determine deposit and guarantees required.

4.5.3 Financial Viability Evaluation

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.5.3.1 TRIM will calculate the averaged Key Financial Ratios which will be used to

assess the Bidder’s liquidity and solvency.

4.5.3.2 The Bidder is responsible to ensure the following data is provided:

4.5.3.2.1 Profitability EBITDA

4.5.3.2.2 Current Ratio = Current Assets / Current Liabilities (Norm 2:1)

4.5.3.2.3 Solvency Ratio = Total Assets / Total Liabilities (Norm 1:1)

4.5.3.3 Companies in existence for more than three years will be measured on the

average over the three financial years.

4.5.3.4 Where a Bidder has been in existence for less than three financial years, TRIM

will

4.5.3.4.1 calculate the Key Financial Ratios using all available audited or if

relevant, otherwise independently verified financial statements

for the period during which the Bidder has operated.

4.5.3.4.2 Where applicable, management accounts and independently

certified projected cashflows may be considered to assess the

Bidder's liquidity, solvency and financial sustainability.

4.5.3.4.3 The absence of three years of financial history will not, in itself,

result in a lower score.

4.6 Concept Operational Model

4.6.1 Bidders are required to submit a concept Operations and Project Delivery Model

demonstrating how the Siding will be developed, operated, and progressively enhanced

throughout the 10-year lease period.

4.6.2 The model must demonstrate the Bidder’s ability to establish and sustain an efficient, safe

and commercially viable operation while ensuring business continuity and supporting the

long-term densification and growth of the rail network.

4.6.3 Bidders must provide a concept Operational Model detailing the concept use of the siding.

4.6.3.1 The concept operational model used should align to the investment proposed,

design layout, equipment deployed and operational methodology.

4.6.3.2 The bidder must provide a high-level simulation of the operational model. The

purpose of this is to articulate how the volume throughput will be achieved.

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.6.3.3 Operational Readiness: The successful bidder must ensure that the siding has

all required environmental approvals (i.e. authorisations, permits and licences)

before commencing with operations.

4.6.3.4 The successful Bidder will be required to submit a clearly defined project

schedule, key milestones, implementation phases, and overall project delivery

timelines demonstrating readiness and viability of executing operations.

4.6.3.5 TRIM reserves the right to review the operational plan times submitted by the

bidder, and should they prove not to be feasible, adjust these times accordingly

during contract negotiations.

4.6.4 Facility Utilisation and Concept Design

4.6.4.1 Bidders must submit a concept design demonstrating how the facility will be

configured and utilised to support the safe and efficient receipt, handling,

stockpiling and dispatch of cargo.

4.6.4.2 The concept design must, as a minimum, demonstrate:

4.6.4.2.1 the allocation and use of areas for rail receiving, cargo handling,

stockpiling, loading/unloading, internal circulation and dispatch;

4.6.4.2.2 the proposed movement of cargo through the facility, from

receipt through handling and stockpiling to dispatch; and

4.6.4.2.3 the proposed use and optimisation of available stockpiling areas,

including access to and recovery of stockpiled cargo.

4.6.4.3 The concept design must demonstrate that the proposed arrangement makes

practical and efficient use of the available facility and minimises unnecessary

movement, congestion, operational conflicts and inefficient use of space.

4.6.4.4 The concept design must be sufficiently detailed to demonstrate the bidder's

proposed approach but is not required to constitute a detailed engineering

design. Bidders must submit a concept design demonstrating how the available

facility and associated infrastructure will be configured and utilised to provide

a safe, functional and efficient cargo receiving, handling, stockpiling and

dispatch operation.

4.6.5 Throughput and Logistics Efficiency

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.6.5.1 Bidders must demonstrate how the proposed operating model will support the

efficient movement of cargo through the siding and maximise the use of

available rail, handling and dispatch infrastructure.

4.6.5.2 The proposal must, as a minimum, address:

4.6.5.2.1 the anticipated throughput capacity and the proposed approach

to achieving efficient cargo handling;

4.6.5.2.2 train receiving, loading/unloading and anticipated train

turnaround;

4.6.5.2.3 the utilisation of siding infrastructure and the interface between

rail, road and cargo-handling activities; and

4.6.5.2.4 potential operational bottlenecks or delays and the proposed

approach to minimising or managing these.

4.6.5.3 Bidders must provide sufficient information to demonstrate that the proposed

operating model is practical and achievable. Key assumptions relevant to

throughput, turnaround times, operating hours, equipment and cargo volumes

must be identified.

4.6.5.4 Where truck staging or holding outside the facility is required, bidders must

indicate how this will be managed to minimise queuing, congestion and

interference with the operation of the siding and traffic flow on adjacent roads

and commercial areas.

4.6.6 Organisational Structure and Skills

4.6.6.1 Bidders must demonstrate that they have an appropriate organisational

structure and management team to effectively and safely operate the siding.

4.6.6.2 The proposal must identify:

4.6.6.2.1 the key management and operational functions required to

operate the siding;

4.6.6.2.2 the proposed roles and responsibilities; and

4.6.6.2.3 the key personnel responsible for the management and

operation of the siding.

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.6.6.3 Bidders must demonstrate that the proposed management and operational

team has the appropriate skills, qualifications, experience and competencies for

the scale and nature of the proposed operation.

4.6.6.4 The proposed staffing structure must appropriately address the key functions

required for the operation of the siding, including, where applicable, rail

operations, cargo handling, logistics, safety, security, maintenance, quality and

environmental management.

4.6.7 Technology and Innovation

4.6.7.1 Bidders must demonstrate how technology and innovation will be used to

improve the safety, efficiency, reliability and utilisation of the siding throughout

the Lease Period.

4.6.7.2 The proposal must identify the key technologies, systems, equipment or

innovative practices proposed for the operation of the siding, including, where

applicable:

4.6.7.2.1 cargo handling and movement;

4.6.7.2.2 rail and road operations;

4.6.7.2.3 safety and security;

4.6.7.2.4 stockpile management and cargo tracking;

4.6.7.2.5 operational monitoring and reporting; and

4.6.7.2.6 maintenance and asset management.

4.6.7.3 Bidders must explain how the proposed technologies or innovations will

improve the operation of the siding and identify the key benefits expected.

4.6.7.4 Bidders must demonstrate their approach to the ongoing modernisation and

improvement of the siding, including how new technologies or improved

operating practices may be introduced during the Lease Period.

4.6.7.5 Proposed technologies and innovations must be practical, appropriate to the

scale and nature of the siding, and capable of being implemented and

maintained by the bidder.

4.6.7.6 Bidders are not required to propose technology in every area. The evaluation

will consider the relevance, practicality and potential benefit of the proposed

solutions rather than the number of technologies proposed.

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.6.8 Project Schedule

4.6.8.1 Bidders must provide a high-level development, rehabilitation, upgrade and/or

construction schedule for the 10-year Lease Period, appropriate to the current

condition and operating status of the siding.

4.6.8.2 For sidings that are currently operational, the schedule must indicate the

proposed timing and phasing of development, upgrades and associated

infrastructure improvements and demonstrate how these activities will be

integrated with ongoing operations while minimising disruption to existing

cargo and rail operations.

4.6.8.3 For vacant or non-operational sidings, the schedule must demonstrate the

proposed process and timeframe for bringing the siding into operation,

including, where applicable, site preparation, rehabilitation, infrastructure

development, installation of equipment, commissioning and commencement of

operations.

4.6.8.4 Where applicable, bidders must demonstrate how the proposed programme will

support the transition from the existing operating environment to the proposed

future operating model without compromising service delivery.

4.6.8.5 The schedule must identify the key development phases, major activities and

anticipated timeframes, together with significant dependencies, constraints and

measures required to manage implementation risks.

4.6.8.6 The proposed schedule must be realistic and aligned with the bidder's proposed

operational model, facility utilisation and infrastructure requirements.

4.7 Security Initiatives

4.7.1 The Bidder should identify security risks associated with the siding location and proposed

operations (e.g. physical location and accessibility of the facility, criminal activity or theft

risks, community and stakeholder-related risks, and environmental or geographic factors

affecting security, etc) and provide mitigation measures.

4.7.2 Based on these risks, the bidder should include a high-level security management strategy

and upon contracting a security and emergency plan (SERP).

4.7.3 The bid submission should contain a high-level description of the security measures that will

be implemented to safeguard the siding infrastructure, movable assets, and cargo. The

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For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

submission should demonstrate rate how these measures will mitigate security risks and

support the safe and secure operation of the siding.

4.7.4 The bidder should describe the measures it will implement to build constructive relationships

with local communities, thereby contributing to the prevention and mitigation of security

threats.

4.7.5 Prior to commencing operations, the lessee shall have a fully developed security plan for the

siding. Guidelines for this security plan can be obtained in Annexure S.

4.8 Siding Investment

4.8.1 Investment Plan

4.8.1.1 As part of the bid response a bidder must submit a plan that details their

investment commitment detailing how they would optimally develop the

operational efficiency siding. The Bidders must complete Annexure K: Detailed

Investment with full details of the intended investment.

4.8.1.2 The investment plan must include all planned investment (immovable and

movable assets), and the scoring will take both into account.

4.8.1.3 Bidders must apply the following definitions for the purposes of this RFP:

4.8.1.3.1 Immovable Assets are assets permanently attached to land

or buildings, or which form part of the fixed property and

cannot be removed without damage or alteration. Immovable

assets are usually treated as property improvements and will

likely revert to the landowner at the end of a lease, e.g.

buildings and warehouses, paved areas, drainage systems,

security fencing, loading and offloading platforms.

4.8.1.3.2 Movable Assets are assets that can be relocated,

transported, or removed without materially damaging the

asset or the land/building to which it is attached. Movable

assets can generally be repossessed, financed separately,

insured independently, or removed by the lessee, e.g. heavy

earthmoving and construction machinery, computers and IT

equipment, hand tools and workshop equipment, office

furniture, security cameras (where not permanently

integrated into a structure).

BT1TRIMRFPER6 Mica of 78

For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

4.8.1.4 All investment commitments in the bid response will form part of the lease

agreement and will be contractually binding.

4.8.1.5 The lease will be managed against the full investment plan (immovable and

movable assets).

4.8.1.6 Bidders must submit one set of figures, and not several scenarios.

4.8.1.7 Bidders need to include the cost and timing of each line item of the investment

over the period of the lease.

4.8.1.8 As a minimum requirement, sidings must be fenced.

4.8.2 Maintenance

4.8.2.1 The maintenance of the rail infrastructure within the siding boundary shall be

the responsibility of the siding lessee.

4.8.2.2 This will include, but is not limited to, maintenance on

4.8.2.2.1 fencing;

4.8.2.2.2 buildings;

4.8.2.2.3 platforms; and

4.8.2.2.4 railway infrastructure.

4.8.2.3 The cost of maintenance is not included in the investment evaluation and

scoring.

4.8.3 Examples

4.8.3.1 The table below provides examples of immovable investment, movable

investment and maintenance costs

BT1TRIMRFPER6 Mica of 78

For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

Examples of Immovable Examples of Movable Examples of Maintenance

Assets Assets (not considered in scoring)

Investment in Investment in

Infrastructure (considered Infrastructure (considered

in scoring) in scoring)

• Fencing
• Security Controls
• Cleaning loading spillages

installation/upgrades

• Heavy Earth Moving
• Turnout general
• Building refurbishment Equipment maintenance
• Railway formation upgrades
• Water Tankers
• Repair slacks
• Loop extensions
• Mobile Offices
• Replace damaged sleepers
• Provision of Yard Lighting
• Etc and fastenings
• Signalling systems
• Minor Repairs following
• Ballast Offloading and incident damages / rail-

Screening works breaks/hookups and

• Turnout upgrades vandalism
• Access roads
• Track MICA
• Drainage
• Rail to mast bonding
• Rail line refurbishments and
• Re-set stagger

upgrades (e.g. Formation

• Track tamping

upgrades to accommodate

• Welding activities

heavier axle loading and

• Etc

extension of lines to

accommodate more

wagons)

• Stock and switches
• Crossings and guard rails
• Condition-based formation

repairs

• Rail replacements
• Sleepers Replacement
• etc

4.8.4 Siding Condition: End of Lease Period

4.8.4.1 At the end of the lease period a joint inspection between TRIM and Lessee’s

Track Master/Inspector should be conducted to determine the asset condition

and to identify areas required for corrective action. This will be for the account

of the Lessee at the end of the lease period.

4.8.4.2 Permissible deviations from the C-standard as stated in the Manual for Track

Maintenance (current version at time of lease expiry) shall be deemed

acceptable.

4.8.4.3 Rails must not exceed the wear limits as stated in the Manual for Track

Maintenance (current version at time of lease expiry).

4.8.4.4 Please see table below for reference:

BT1TRIMRFPER6 Mica of 78

For Leasing of the Transnet Rail Infrastructure Manager Sidings/Facilities for a period of ten (10) years

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25 price and delivery basis for goods .................................................................................................... 9 31 contract quantities and delivery requirements ........................................................................... 10

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to the defined specifications of the works, goods and services; and

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supply a certificate signed by a director as to its full compliance with the

requirements of clause 3.3.2 above.

4. Announcements

4.1 Neither party will make or permit to be made any announcement or disclosure of its prospective interest

in the Bid without the prior written consent of the other party.

4.2 Neither party shall make use of the other

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supply an affidavit as per

(Appendix D and E). These affidavits must be resubmitted on an annual basis as failure to do so may result in the

supplier’s account being temporarily suspended.

In addition, please note of the following very important information:

1. If your annual turnover is less than R10 million, then in terms of the DTI codes, you are cl

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performance of the services and/or obligations contemplated in this RFP and any

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Maintenance........................................................................................................................................... 26

24 responsibility for electrical installations ......................................................................... 28

25 signage ........................................................................

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1.1 This Rental Offer Form constitutes the Bidder's formal financial offer for the lease of

the rail siding/facility identified above.

1.2 The Bidder shall complete this Annexure in full and ensure that it is duly signed by an

authorised representative.

1.3 Failure to complete, sign and submit this Annexure with the Proposal will render the

Proposal non-responsive.

2. Rental offer

2.1 The Bidder hereby offers the following market-related rental for the lease of the rail

siding/facility:

Table 1: Rental Offer Summary

Rental offer summary

Monthly rental VAT @ 15% Monthly Rental

offer Excl. VAT Offer Incl. VAT

Monthly Base Rental Offer

3. Rental payment

3.1 The Bidder confirms that the rental offered shall:

3.1.1 be payable monthly in advance

3.1.2 exclude municipal charges, utilities and other statutory charges unless

otherwise provided in the Lease Agreement.

Annexure I of 3 Rental Offer

3.2 The Bidder acknowledges and agrees that, should it be appointed as the Successful

Bidder, it shall negotiate with TRIM a percentage of turnover over and above the

agreed rental payable under the Lease Agreement.

4. Validity of offer

4.1 The Bidder confirms that this Rental Offer shall remain valid for the Bid Validity Period

stipulated in the RFP and may not be withdrawn during such period.

4.2 To facilitate like-for-like comparison bidders must submit rental offers strictly in

accordance with this schedule and not utilise a different format.

Annexure I of 3 Rental Offer

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Cell E3: Will the asset remain with TRIM after the lease period

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construction waste during the YES NO

construction/initiation phase?

If yes, what type and estimated quantity will be produced per month? m3

How will the construction solid waste be disposed of (describe)?

Where will the construction solid waste be disposed of (describe)?

Final Environmental Screening Tool designed for use in assessing Lessee Applications

Wi

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Cell A2: Risk Assessment Name: e.g. Road Tanker Exchange Yard

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Provision of Common Data for critical Resources

required during disruption or disaster events and required to

relocate to recovery site or expected to work

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information i.e. Name of Risk Assessment, Date the

risk assessment was undertaken and Name of the Risk Assessor.

2. Column A. Provide a sequential number from one (1) to the risk to be assessed.
3. Column B. Indicate the Type of Risk this is e.g. Financial or Health and Safety etc.
4. Column C. Provide a full Risk Name that describes the risk being assessed and the impact

of the risk should it materialise.

5. Column D. Risk Owner, provide the name of the person who is responsible to ensure the

risk controls are maintained (as in Column F and G) and the risk actions are implemented

(as defined in Columns L, M, N and O).

6. Column E. Risk Cause/s, Identify and note the cause/s that give rise to the risk.
7. Column F. Control Name, Identify and note existing controls that address the cause/s as

captured in Column E. The control and risk causes should be paired such that any risk

cause/s without an assigned control is easily identified and if determined to have a

significant impact be addressed with a Risk action/ task under Column L.

8. Column G. Control Effectiveness. Utilising the guide (Table 3 - Risk Control Effectiveness

Rating) provided in the excel template under

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appointments that will be made if successful?

Has the Contractor made provision for the cost for health and safety requirements for the

1.3

contract/project

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As a condition precedent of the lease agreement and prior to commencing operations, the lessee will have to submit a security plan.

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appointment of a suitability-certified responsible security manager.

1.2 The security service