Sale of ferrous scrap metal to scrap dealers, steel producers, smelters and foundries – 5-Year contract

Transnet invites proposals for the sale of ferrous scrap metal for a period of five years. Scrap is generated from operational by-products, obsolescence, lifespan expiry, or irreparable damage, and is concentrated countrywide across seven clusters. Bidders may bid for one or more clusters. Successful contractors must dismantle, cut, process, load and transport all scrap at their own cost, and the scrap must be consumed in South Africa.

Evaluation is per cluster, with each of the seven clusters assessed separately.

• Bidders may bid for one or more clusters; they are not required to bid for all clusters.
• Each cluster is evaluated on pricing and B-BBEE (specific goals), with the highest-ranked compliant bidder preferred for each cluster.
• Before award, Transnet may conduct site visits to recommended bidders as due diligence.
• Bidders must be registered suppliers in South Africa and must remain registered with Transnet and compliant with National Treasury regulations throughout the contract.

Transnet seeks a contractor to purchase, remove, process and consume ferrous scrap metal generated by its operations across South Africa, for a period of five years. Scrap is concentrated countrywide across seven clusters, covering different Transnet operating divisions including the ports, rail network and other sites.

Scope of work:

• Dismantle, cut, process, load and transport all scrap to the contractor's premises at the contractor's own cost.
• Collect scrap from designated cluster sites; the contractor is not required to maintain physical operations at these sites but must have adequate logistical capacity to cut and collect there.
• Handle any load quantity available for collection in a full skip; do not stockpile material to reach optimal load quantities. If further processing is needed, transport the full skip to the contractor's facility or a rented site.
• Provide reliable skip service (removal and replacement of full skips) in port environments; no staging area is provided for general processing except for oversized material too large for a skip or where works orders for dismantling are issued.
• Own or have access to cutting, processing and loading equipment (ideally an excavator with grab attachment). Proof of ownership or access is required on request.
• Collect all types of scrap regardless of condition (e.g., greasy bearings, rusted scrap, 240-metre and other rail lengths, stacks of rail spring clips).
• Collect scrap anywhere along the rail network.
• Cut vegetation as needed by Transnet to access scrap, on a pre-approved, reimbursed basis.
• Offload materials from scrap wagons before cutting, on agreed reimbursement terms.
• Clean and decontaminate chemicals and other contamination from tankers and wagons as needed, on a pre-approved, reimbursed basis.
• Transport reclaimables from cut wagons or locomotives to Transnet dedicated sites, on pre-approval and reimbursement terms.
• Dismantle and separate non-ferrous from ferrous scrap.
• Provide scrap extraction and processing services, including removing and disposing of product from wagons and containers.

Exclusions:

• Transnet may retain valuable components for reuse from scrapped assets on site.
• Transnet may retain semi-precious metals (copper, aluminium) contained in an asset at disposal.
• If the service provider fails to accept a works order within seven calendar days of issuance or fails to execute within agreed timelines, Transnet may cancel the order and re-issue to another awarded bidder in another cluster.
• Transnet may exclude specific assets and dispose of them as complete functional units outside this contract.

The bidder must demonstrate adequate logistical capacity to cut and collect scrap at the designated cluster sites. The approach must ensure that any available load quantity is handled in a full skip, without stockpiling. The bidder must show ability to dismantle, cut, process, load, transport, and where necessary decontaminate scrap. Equipment and resources will vary by site; bidders must factor this into their pricing.

Pricing must cover all input costs, including dismantling, cutting, processing, loading, transport, and equipment. The contract is income-generating: Transnet will not pay the bidder; the bidder pays Transnet. Award is based on pricing per cluster, plus B-BBEE (specific goals).

Income-generating contract: Transnet will not pay the contractor; the contractor pays Transnet and must bear all input costs.

• Bidders must factor all costs of dismantling, cutting, processing, loading, transport, and equipment into their pricing offer.
• The successful bidder must either:
• Provide an irrevocable bank guarantee in a form and amount acceptable to Transnet; or
• Pass Transnet's credit vetting process.
• Transnet may require cash customer/upfront payment; it has sole discretion on the sufficiency of any bank guarantee and the outcome of credit vetting.

Invoicing and payment:

• Contractor's financial systems must process Transnet invoices within 48 hours of receipt.
• Invoices for a given period must be paid within seven days of Transnet issuing the month-end statement; this period must not extend beyond the seven-day payment term from statement date.

Supplier registration:

• Bidders must be registered as suppliers with Transnet and comply with all applicable National Treasury regulations throughout the contract period.

Equipment documentation:

• Proof of ownership or access to cutting, processing and loading equipment must be provided on request.

Local consumption requirement:

• It is an explicit contract requirement that no ferrous scrap purchased under the contract may be exported or resold to any other parties. All scrap must be consumed and processed within the local South African market for reuse in the local steel industry.
• Acceptable domestic consumption includes resale to South African foundries and smelters, and transformation into other steel products.
• Transnet may periodically request invoices from registered SA smelters and foundries, proof of payment, and/or production schedules showing Transnet tonnages consumed.

Environmental compliance:

• Contractors disposing of assets containing asbestos must be equipped to do so and must provide Transnet with the necessary disposal certificates. Failure to provide certificates constitutes a breach of contract.
• Contractors disposing of hazardous waste (oils, greases, batteries, chemical residues) must be equipped to do so and must provide Transnet with waste manifest documents showing disposal at a permitted facility in a controlled and responsible manner.
• Compliance with the National Environmental Management Act (NEMA), the Waste Act, and the Department of Environmental Affairs is required.
• Bidders must submit details of their entity's environmental policies, including waste disposal, recycling and energy conservation.

B-bbee:

• Each cluster is evaluated separately for B-BBEE (specific goals); no specific B-BBEE level threshold is stated in this document.

No specific health and safety requirements are stated. The contractor must comply with all regulatory standards relevant to ferrous scrap cutting, collection and utilisation.

Environmental obligations:

• Comply with the National Environmental Management Act (NEMA), the Waste Act, and Department of Environmental Affairs requirements.
• Provide proof of lawful disposal of waste to discharge Transnet's legal obligations as the generator of waste.
• Asbestos disposal: must be equipped to dispose of asbestos and provide Transnet with disposal certificates; failure is a breach of contract.
• Hazardous waste (oils, greases, batteries, chemical residues): must be equipped to handle and must provide waste manifest documents showing disposal at a permitted facility.
• Bidders must submit details of their entity's environmental policies, including waste disposal, recycling and energy conservation.

Transnet retains rights to exclude certain assets or retain valuable components, copper and aluminium. A service provider failing to accept a works order within seven calendar days, or failing to execute within agreed timelines, may have the works order cancelled and re-issued to another bidder. Transnet may also dispose of specific assets as complete functional units outside this agreement. The contract requires the bidder to either provide an irrevocable bank guarantee acceptable to Transnet or pass Transnet's credit vetting process. Cash/upfront payment may be required.

Clusters evaluated separately on pricing and B-BBEE. Highest-ranked compliant bidder per cluster preferred.

The tender is for the sale of ferrous scrap metal generated by Transnet operations across South Africa. Scrap arises from operational by-products, obsolescence, lifespan expiry, or irreparable damage. The contract runs for 5 years 'as and when required'.

Bidders must be registered suppliers in South Africa. They bid for one or more of seven clusters across the country. The successful contractor must collect, cut, process, load and transport scrap to their own facilities at their own cost. The award is income-generating; Transnet does not pay for the scrap but receives revenue.

The tender aims to maximise revenue, reduce logistical burden, support local steel industry, and ensure compliant disposal. Emphasis on port scrap clearing urgency.

Bidders must have adequate logistical capacity, own or access to appropriate equipment (e.g. excavator with grab), and be able to handle all scrap types and quantities. No staging area in ports for processing.

Transnet retains rights to keep valuable components and semi-precious metals, cancel works orders for non-acceptance, and exclude assets from the contract.

Closing date: 30 November 2026 at 16:00

Briefing session: 6 November 2026 at 10:00 (non-compulsory, via MS Teams, approx. 2 hours)

Clarification deadline: 23 November 2026 (before this date, submit RFP Clarification Request Form)

Bid validity: 180 business days from closing date

Enquiries (technical/procedure):

• Name: Nompumelelo Langa
• Email: [email protected]
• Telephone: not provided

Complaints:

• Email: [email protected]

Bid submission portal: https://transnetetenders.azurewebsites.net

RFP download: National Treasury e-Tender portal at www.etenders.gov.za (free) or Transnet portal.

Submission method: Transnet e-Tender Submission Portal at https://transnetetenders.azurewebsites.net

• Register and log in with the company's own profile; bids submitted through another company's profile are disqualified.
• Upload each bid document against the selected tender; upload limit 30 MB per upload, multiple uploads permitted.
• Submit at least one day before closing to avoid technical issues; late submissions not accepted.
• Sign, stamp and date each page of the RFP (excluding annexures) before uploading.
• Provide a priced offer as required in the pricing schedule.

All returnable documents listed in Section 5 must be completed and returned by the closing date and time.

Returnable forms include:

• SBD 1 (Invitation to Bid): bidder details, signed as the offer cover page.
• SBD 4 (Declaration of Interest): discloses any state employment or connection to Transnet.
• SBD 8 (Declaration of Bidder's Past SCM Practices): declares past supply chain management conduct.
• SBD 9 (Certificate of Independent Bid Determination): certifies independent pricing, no collusion.
• SBD 5 (Preference Points Claim): claims B-BBEE preference points.
• RFP Declaration and Breach of Law Form: certifies acquaintance with RFP and no breach of law.
• Specific Goals Points Claim Form: claims points for specific goals under the 80/20 system.
• Job-Creation Schedule: provides job creation commitments.
• Pricing and delivery schedule (Section 4) with prices as a percentage of Rotterdam Metal Bulletin.

Disqualification risks:

• Any returnable document omitted or unsigned.
• Late submission.
• Non-compliant pricing format or incomplete pricing schedule.
• Bids not uploaded under the bidder's own registered profile.
• Collusion or canvassing Transnet employees between closing and award.

Evaluation staged sequentially, but Transnet may run steps in parallel.

Stage 1 – Administrative and substantive responsiveness:

• Bid lodged on time; all returnable documents completed and signed; valid pricing.
• Pre-qualification criteria (mandatory):
• MOU or agreement with a foundry owner or smelter.
• Valid SAPS-issued Certificate of Registration as a Second-Hand Goods Dealer.
• Health and Safety management plan.
• Environmental management plan.

Failure to pass Stage 1 disqualifies the bid.

Stage 2 – Technical/functional threshold: minimum 70 points out of 100.

Technical scoring (weighted as per tender):

• Team composition (30 points): provide organogram and certified copies of qualifications and licences for 7 roles: forklift operator, cutters/burners, grabber operator, excavator operator, crane truck operator, driver (Code C1 with PrDP), driver (Code EC with PrDP). Points reduce if fewer than all 7 roles are provided; fewer than 5 roles scores 0.
• Transportation (30 points): details of vehicles to be provided.
• Experience (25 points): reference letters on client letterhead covering scrap sale work; 4+ references = 25 points, 3 = 20, 2 = 15, less than 2 = 0. Purchase orders and work orders not accepted.
• Tools and machinery (15 points): proof of ownership (registration documents with photographs) or lease agreements/letters of intent for 7 items. All 7 = 15 points, 5–6 = 10 points.

Stage 3 – Weighted scoring and award:

• Price: 90 points.
• Specific goals (B-BBEE and transformation): 10 points.
• Per cluster, the highest-ranked compliant bidder is awarded; clusters are not split.
• Award subject to due diligence (including site visits) and price negotiation if applicable.

Note: JV/consortium evaluated on one consolidated B-BBEE scorecard.

Scope: Sale of ferrous scrap metal generated by Transnet operations across South Africa to scrap dealers/recyclers, primary steel producers/smelters and foundries, as and when required, for a 5-year contract.

Clusters: Seven clusters: Koedoespoort, Bellville, Uitenhage, Bloemfontein, East London, Germiston, Durban. Bidders may bid for one or more clusters; each cluster evaluated and awarded separately. Contractor must service all sites linked to the awarded cluster.

Contractor responsibilities:

• Dismantle, cut, process, load and transport all scrap to own premises at own cost.
• Provide own cutting, processing and loading equipment (e.g. excavator with grab) – proof of ownership or access required.
• Collect all types of scrap regardless of condition (e.g. greasy bearings, rusted scrap, 240m rails, spring clips).
• Collect scrap anywhere along the rail network.
• Cut vegetation to access scrap (pre-approval, reimbursement terms agreed).
• Offload materials from scrap wagons before cutting (pre-approval, reimbursement terms agreed).
• Clean and decontaminate chemicals/contamination from tankers and wagons (pre-approval, reimbursement terms agreed).
• Transport reclaimables from cut wagons/locomotives to Transnet sites (pre-approval, reimbursement terms agreed).
• Dismantle and separate non-ferrous from ferrous scrap.

Port environment:

• Reliable skip service (removal and replacement of full skips). No staging area provided for general processing, except for oversized scrap or works orders for dismantling.
• Urgent clearing of scrap at ports.

Local consumption requirement:

• No export or resale of scrap; all scrap must be consumed and processed within South Africa. Acceptable uses include resale to SA foundries/smelters and transformation into steel products. Transnet may request invoices, proof of payment or production schedules.

Transnet retains rights:

• Keep valuable components for reuse and semi-precious metals (copper, aluminium).
• Cancel a works order if not accepted within 7 calendar days or not executed within agreed timelines.
• Exclude specific assets from the contract and dispose of them separately.

Environmental compliance:

• Comply with NEMA and Waste Act; supply proof of lawful disposal.
• For asbestos: provide disposal certificates (breach if not provided).
• For hazardous waste (oils, greases, batteries, chemical residues): provide waste manifest documents showing disposal at a permitted facility.

Other obligations:

• Comply with DTIC, ITAC Export Control Framework, Second-Hand Goods Act, Customs & Excise Act (Export Duties) and National Environmental Management: Waste Act.
• Employment Equity Act compliance.

Approach to scrap disposal:

• Bidders may choose to bid for one or more clusters; each cluster evaluated separately.
• Full operational capability required: dismantling, cutting, processing, loading and transport of all scrap types.
• Demonstrate ability to handle any available load quantity without stockpiling; collect full skips.
• Own or have access to appropriate equipment (e.g. excavator with grab); provide proof.
• For port areas, reliable skip service without on-site processing (except for oversized items or works orders).
• Methodology for collecting scrap along rail network and cutting vegetation when needed.
• Approach to cleaning/decontaminating tankers and wagons, offloading materials, and transporting reclaimables.
• Process for separating non-ferrous from ferrous scrap.
• Compliance with all regulatory standards.

Experience requirement:

• Provide reference letters from previous clients confirming scrap sale related work.
• Letters must be on client's letterhead, signed/stamped, with contactable references.
• Reference letters must be in English and may be verified.
• Points allocation: 4+ references = 25 points; 3 = 20; 2 = 15; less than 2 = 0.
• No purchase orders, work orders or completion certificates accepted.
• For subcontracted work, include the main contractor's appointment/reference letter.

Key personnel (team of 7 required for full points):

• 1 x Forklift Operator: valid forklift certificate/licence, Code B (Code 8) driver's licence, ID.
• 1 x Cutter/burner: valid cutting torch certificate/licence, Code B (Code 8) driver's licence, ID.
• 1 x Grabber Operator: valid grabber certificate/licence, Code C1 (Code 10) driver's licence, ID.
• 1 x Excavator Operator: valid excavator certificate/licence, Code C1 (Code 10) driver's licence, ID.
• 1 x Crane Truck Operator: valid crane truck certificate/licence, Code C1 (Code 10) driver's licence, ID.
• 1 x Driver with Code C1 (Code 10) licence and PrDP.
• 1 x Driver with Code EC (Code 14) licence and PrDP.

All certified copies must not be older than 3 months from closing date.

Provide organogram and appointment letters for the team.

Pricing must be quoted as a percentage (%) of the Rotterdam Metal Bulletin price.

Highest average percentage price wins per cluster.

Clusters not split; contractor services all sites in cluster.

Pricing schedule items and weightings:

1. Heavy scrap (above 3.5mm thick) – 10%
2. Light scrap (below 3.5mm thick) – 5%
3. Rails within the network – 30%
4. Cutting of rolling stock (as and where lying) – 10%
5. Port equipment (wharf cranes, straddle carriers etc.) – 10%
6. Mixed steel incl. rubber rollers – 0%
7. Port floating vessels – 10%
8. Shavings – 5%
9. Wheel centres/Axles – 20%

Pricing rules:

• Full-service basis covering all costs.
• Strict adherence to provided pricing schedule; deviation = non-responsive.
• Incomplete pricing schedule for a cluster = non-responsive.
• Discounted prices only considered if unconditional.
• Prices firm for contract duration.
• Final pricing scores rounded to 2 decimal places.

Pricing format:

• Prices quoted as a percentage (%) of the Rotterdam Metal Bulletin price.
• Highest average percentage wins per cluster; the Rotterdam price converted to rand every Monday based on ZAR/US$ exchange rate.
• Full-service pricing covering all costs; any un-priced disbursement not accepted.
• Prices firm for the contract duration; discounted prices only considered if unconditional.
• Pricing schedule must be completed strictly as provided; incomplete schedule or deviation = non-responsive.

Bank guarantee / credit:

• Successful bidder must provide an irrevocable bank guarantee equivalent to two months of annual estimated revenue, OR successfully pass Transnet's credit vetting.
• If neither, bidder treated as a cash customer.
• Surety deposit/bank guarantee approximately R15 million per cluster (based on historic turnover, subject to credit assessment).

Payment terms (contractor pays Transnet):

• Payment of full value plus VAT within 7 days of statement/tax invoice by bank deposit or electronic transfer.
• No further scrap released if payment not received within 7 days.
• Late payment incurs monthly compounded interest at prime rate plus 1%.

Invoicing:

• Transnet processes invoices within 48 hours of receipt; invoices paid within 7 days of month-end statement, not extending beyond 30 days from statement.

Other financial requirements:

• No reimbursement for bid preparation costs.
• Award is an income-generating contract; all contractor costs factored into pricing.

Mandatory compliance:

• CSD registration: all bidders (except foreign suppliers with no local entity) must be registered on the Central Supplier Database (https://secure.csd.gov.za/).
• Tax compliance: submit SARS Tax Compliance Status (TCS) PIN or certificate; failure to provide may render bid invalid. Each party in a JV/consortium/subcontracting must submit separate TCS.
• B-BBEE: submit a B-BBEE status level verification certificate, or sworn affidavit for EMEs/QSEs. Required for preference points.
• SAPS Second-Hand Goods Dealer Certificate (mandatory pre-qualification).
• MOU or agreement with a foundry owner or smelter (mandatory pre-qualification).
• Health & Safety management plan (mandatory pre-qualification).
• Environmental management plan (mandatory pre-qualification).
• Compliance with Employment Equity Act (Section 53).
• Compliance with all applicable laws and regulations.

Foreign suppliers:

• Must answer questionnaire; if not resident, no branch, no permanent establishment and no source of income in RSA, TCS PIN not required.

General:

• No collusion; colluding bidders disqualified and restricted from doing business with organs of state.
• Security clearance may be required (up to CONFIDENTIAL/SECRET/TOP SECRET) for successful bidder, personnel and subcontractors.
• Material deviation from standard contractual terms may lead to disqualification (legal review).

Mandatory pre-qualification: provide a Health and Safety management plan.

Comply with all applicable safety regulations.

Contractor must have own cutting, processing and loading equipment, and demonstrate safe handling.

Ability to clean and decontaminate chemicals/contamination from tankers and wagons.

Ensure safe removal of asbestos and hazardous waste, with proper disposal certificates/manifests.

All personnel operating equipment must hold valid certificates and licences.

Site-specific safety measures as required by Transnet.

Comply with NEMA and the Waste Act; provide proof of lawful disposal of waste.

Provide asbestos disposal certificates where applicable; failure is a breach of contract.

Provide waste manifest documents for hazardous waste (oils, greases, batteries, chemical residues) showing disposal at permitted facilities.

Submit details of company's environmental policies (waste disposal, recycling, energy conservation).

No export of scrap; all scrap to be processed and consumed within South Africa to support local steel industry.

Transnet may request invoices, proof of payment or production schedules to verify local consumption.

Comply with DTIC, ITAC Export Control Framework, Second-Hand Goods Act, Customs & Excise Act, and environmental legislation.

Contract duration: 5 years (as and when required).

Conditions of contract:

• Subcontracting: minimum 30% of total contract value must be subcontracted (transformation initiative).
• Scrap must not be exported or resold; all scrap consumed locally in RSA.
• Security clearance may be required.
• Transnet may award, cancel, modify, split or delay as per its rights.
• Works orders: if not accepted within 7 calendar days or not executed within agreed timelines, Transnet may cancel or re-issue to another bidder.
• Transnet may retain valuable components and semi-precious metals.
• Transnet may exclude specific assets from contract.
• Contractor responsible for acts/omissions of its employees and subcontractors.
• Non-disclosure: all information treated as confidential; written approval required to disclose.
• Legal review: proposed contract terms subject to Transnet Legal Counsel approval; material deviations can disqualify.
• Transnet may conduct due diligence on subcontractors (anti-fronting).
• Non-performance may lead to contract cancellation and possible restriction.
• Payment terms: contractor pays for scrap within 7 days; late payment interest at prime + 1%.
• Quarterly reviews with account representative; Transnet may replace team members deemed not adding value.
• Service level: 95% on quality/quantity/specification compliance and on-time delivery.

Evaluation stages and criteria (supplement):

• Stage 1: Administrative/substantive responsiveness – checks for timely submission, completed returnable documents, signed bid, priced offer, compliance with pre-qualification (MOU with foundry, SAPS certificate, H&S plan, environmental plan).
• Stage 2: Minimum threshold 70 points on technical criteria (team composition 30, transportation 30, experience 25, tools & machinery 15).
• Stage 3: Weighted scoring – Price 90 points, Specific Goals 10 points. Highest average percentage price wins per cluster.
• Due diligence (including site visits) for recommended bidders before award.
• Transnet may run evaluation steps in parallel.
• Reference letters for experience must meet strict criteria; no purchase orders accepted.

Integrity Pact Reporting:

• Tip-Off Anonymous hotline: 0800 003 056

Returnable documents:

• RFX Declaration Form: certifies the bidder has read and agreed to the Supplier Integrity Pact; the contract will incorporate the Integrity Pact automatically.
• Breach of Law Form: declares no previous serious law transgressions in the last five years.

All potential bidders must read the Integrity Pact and certify agreement in the RFX Declaration Form.

Bidder must not appear on National Treasury's Register of Tender Defaulters or List of Restricted Suppliers.

Bidder must not have previous transgressions of serious law (e.g., corruption, fraud, theft, extortion, Competition Act contraventions) in the last five years.

Bidder must not have litigated against Transnet in bad faith.

Bidder must not subcontract to a restricted company.

Bidder must complete the Breach of Law Form contained in the RFX document.

The Integrity Pact prohibits collusive bidding, price disclosure to competitors, and any form of bribery or corrupt practice.

Violations of the Integrity Pact may lead to disqualification, exclusion for up to 10 years, contract cancellation, and reporting to the Competition Commission or NPA.

The tender is for the sale of ferrous scrap metal to scrap dealers/recyclers, primary steel producers/smelters, and foundries, to be consumed in South Africa, on an as-and-when-required basis for five years. Specific quantities and locations are not stated in this annexure.

For the purposes of independent bidding, a 'competitor' is defined as any individual or organisation that has been requested to submit a bid, could potentially submit a bid based on their qualifications, abilities or experience, or provides the same goods and services or is in the same line of business as the bidder. Bidders must arrive at their bid independently, without consultation, communication, agreement, or arrangement with any competitor regarding prices, market allocation, pricing methods, the decision to bid, or bid content. Communication between joint venture or consortium partners is not considered collusive bidding.

The Integrity Pact aims to enable Transnet to obtain the contract at a reasonable and competitive price in conformity with defined specifications, and to prevent bidders from bribing or participating in corrupt practices to secure the contract. Under-pricing and anti-competitive practices are explicitly prohibited. Specific pricing schedule details are not included in this annexure.

Transnet may require an advance bank guarantee and performance or warranty bond. If furnished, these can be encashed to recover payments made plus interest, in the event of a breach.

If a supplier subcontracts a portion of the bid without declaring it, Transnet must penalise the supplier up to 10% of the contract value.

Bidder must not appear on National Treasury's Register of Tender Defaulters or List of Restricted Suppliers.

Bidder must not have previous serious law transgressions in the last five years.

Bidder must complete the Breach of Law Form.

Bidder must sign and comply with the Supplier Integrity Pact; it becomes part of the contract.

Bidder must uphold the ten principles of the United Nations Global Compact (human rights, labour, environment, anti-corruption).

Transnet has a 'Zero Gifts' policy; accepting or offering gifts, favours, or benefits is prohibited.

Bidder must disclose any conflict of interest (family, business, or social relationship with a Transnet employee or board member) in the RFX declaration form.

Bidder must not lend to or borrow from any Transnet committee member or sourcing process participant.

Bidder must provide a copy of its code of conduct if required by Transnet.

Foreign bidders must disclose agents or representatives in South Africa; South African bidders must disclose foreign principals, if any.

No health and safety requirements are stated in this annexure.

Bidders must uphold the ten principles of the United Nations Global Compact (UNGC) regarding human rights, labour, environment, and anti-corruption. Environmental principles include supporting a precautionary approach to environmental challenges, promoting greater environmental responsibility, and encouraging the development and diffusion of environmentally friendly technologies.

The Integrity Pact is governed by and interpreted under the laws of the Republic of South Africa. It remains valid for an indefinite period unless cancelled by either party. Invalid provisions do not affect the remainder. Disputes should be resolved amicably where possible; litigation in bad faith (vexatious proceedings, perjury, scurrilous allegations, abuse of court process) can lead to exclusion from business with Transnet. Transnet may, without compensation, exclude a bidder from the bidding process, cancel an awarded or signed contract, recover all sums paid, encash guarantees or bonds, cancel all other contracts with the bidder, and exclude the bidder from future bids with Transnet and other organs of state for a specified period. Bidders who become aware of dishonest, fraudulent, or corruptive behaviour by Transnet employees should report it to a senior Transnet official or the Tip-Off Anonymous hotline 0800 003 056.

Bidders must not collude with other parties to preclude a competitive bid price or impair transparency, fairness, and progress of the bidding process. Bidders must not enter into illegal or dishonest agreements with other bidders, must not commit criminal offences under anti-corruption laws, must not misuse information provided by Transnet, and must not misrepresent facts or furnish false or forged documents. Violations may lead to rejection, exclusion, and reporting to authorities. Bidders must also certify compliance with the Integrity Pact in the RFX Declaration Form.

Tender for the sale of ferrous scrap metal to scrap dealers/recyclers, primary steel producers/smelters, and foundries, to be consumed in South Africa, on an 'as and when required' basis for five (5) years.

Source material only confirms the general scope; quantities and locations not stated.

Closing: 30 November 2026 at 14:00.

Briefing and site visits: none stated.

Submission portal: https://transnetetenders.azurewebsites.net

No named contacts or submission address stated in the source material.

Submission method: Transnet eTender portal (https://transnetetenders.azurewebsites.net)

Registration requirements:

• Bidders must register on the Transnet eTender portal before submitting.
• Use the same email address that received the tender invitation when registering or signing in; otherwise the tender will not be visible.
• Complete all registration fields; blank fields are not allowed.
• If no Central Supplier Database (CSD) number exists, enter the company registration number in that field.
• A verification code is emailed; copy and paste it to verify the account.

Finding the tender:

• After signing in, select 'Advertised Tenders' to view open tenders.
• Search by tender number, name or description.

Intent to bid:

• On the tender page, select 'Log an Intent to Bid' and submit it.
• Clarifications may be requested via the portal; responses from Transnet are reflected on the Submission Intent Details page.

Uploading returnables:

• Upload documents under the relevant tabs: Mandatory, Essential, Non Essential, Other.
• Maximum file size per upload: 30MB; multiple files can be uploaded.
• Ensure a stable internet connection; do not leave submission to the last minute.
• After uploading, verify that all required information is correctly submitted via the 'MY BID DOCUMENT SUBMISSION' view.

Recommended timing:

• Complete registration and bidding at least 1 day (24 hours) before the closing date.

Returnable forms:

• All returnable documents listed in the tender pack must be completed, signed and uploaded.

Eligibility:

• Bidders must be scrap dealers/recyclers, primary steel producers/smelters, or foundries.
• The scrap metal must be consumed in South Africa.

Scoring split, minimum qualifying score, and preference points not stated in the source material.

Scope: Sale of ferrous scrap metal to qualifying buyers (scrap dealers/recyclers, primary steel producers/smelters, foundries) for consumption in South Africa.

Term: As and when required for a period of five (5) years.

Quantities, specifications, and delivery locations not stated in the source material.

CSD registration:

• A Central Supplier Database (CSD) number is required.
• If no CSD number exists, the company registration number must be used in that field.

No other compliance requirements (tax clearance, B-BBEE, CIDB, local content) stated in the source material.

Returnable document

• Annexure J (Due Diligence Questionnaire): must be completed and submitted, with the supporting evidence for each item provided and the relevant box ticked.
• The questionnaire covers yard layout, weighbridge, factory, machinery and equipment, and processing/manufacturing flow.

Eligibility screening

• Bidders must be a scrap dealer/recycler, a primary steel producer/smelter, or a foundry.
• The ferrous scrap metal must be consumed within South Africa.

Due diligence

• Completion of Annexure J (Due Diligence Questionnaire) is mandatory.
• Bidders must allow physical inspection of their facilities as part of the evaluation.

Due diligence items to be evidenced

• Yard layout: inbound and outbound procedure, confirmed by physical observation.
• Weighbridge: weighing procedure and a calibration certificate, confirmed by physical observation.
• Factory: size of the factory, confirmed by physical observation.
• Machinery and equipment: operational status, confirmed by physical observation.
• Processing/manufacturing: inbound, manufacturing, outbound and storage flow, confirmed by physical observation.

Eligibility

• Bidder must operate as a scrap dealer/recycler, a primary steel producer/smelter, or a foundry.
• The ferrous scrap metal must be consumed within South Africa.

Returnable document

• Annexure J (Due Diligence Questionnaire): completed and signed, with supporting evidence for each item.

Site access

• Bidders must permit physical inspection of their facilities for the due diligence assessment.

Transnet SOC Ltd, through its operating division Transnet Freight Rail, enters into a master agreement with a contractor for the disposal of ferrous scrap metal. The agreement provides for the sale of scrap steel to scrap dealers/recyclers, primary steel producers/smelters, and foundries that will consume the scrap in South Africa, on an as-and-when-required basis over five years. The contractor may be required to collect, transport, and process the scrap from various Transnet sites.

Eligibility: bidders must be scrap dealers/recyclers, primary steel producers/smelters, or foundries that will consume the scrap in South Africa.

Conditions of contract:

• The contractor may only procure the assets for use in a South African foundry or as feedstock in a South African steel mill.
• The contractor must maintain its B-BBEE ownership and status at least at the level specified in the agreement, as at the commencement date, for the entire term.
• The contractor must be authorised to enter the agreement and suitably qualified to provide the services.
• The contractor must comply with all applicable laws and regulations, including Transnet's security requirements.
• The contractor must not engage directly or indirectly with third parties to resolve delays; Transnet handles such matters.

Scope: Disposal of Transnet's ferrous scrap metal to scrap dealers/recyclers, primary steel producers/smelters, and foundries.

Services: The contractor will collect, transport, and process ferrous scrap steel from Transnet sites (as listed in Annexure H) on an as-and-when-required basis for five years.

Works Orders: Transnet will issue Works Orders detailing the services, location, assets, estimated volume, and reclaimable assets.

Container bins: The contractor may place vehicle load bins at Transnet sites for scrap collection.

Pricing basis: Invoicing based on the net weight of assets removed, priced as a percentage of the Rotterdam price (average exchange rate as per tender submission).

Reclaimable assets: The contractor must separate reclaimable assets at a processing cost of R4,000 per bogie and R2,000 per component, escalating annually by inflation. Transport of reclaimable assets on a 20-ton truck at R28.00 per km (excluding VAT), escalating at the SEIFSA index.

Weighing: Weighing at certified Transnet weighbridges; if none available, the contractor's weighbridge is used.

Payment: Full value of assets plus VAT must be paid to Transnet's designated bank account by bank deposit or electronic transfer within 7 days from date of the tax invoice.

If payment is not received within 7 days, no further assets will be made available until payment is received.

Risk: Risk of loss or damage passes to the contractor once the transport vehicle exits the Transnet site over a certified weighbridge (or contractor's weighbridge for external sites).

Insurance: The contractor must maintain adequate insurance for assets after risk passes, and carry workers' compensation insurance for its employees.

Liability cap: The contractor's liability is limited to direct damages, not exceeding R50,000,000.00 in any 12-month period.

Load bin cost: Replacement cost of vehicle load bins is R30,000 each (excluding VAT) as at signature date.

B-bbee:

• The contractor must maintain its B-BBEE ownership and status level for the term of the agreement.
• The contractor must furnish Transnet with a B-BBEE strategy and plan detailing initiatives and timelines to improve its B-BBEE status.
• If the contractor's B-BBEE ownership level decreases, it must inform Transnet within 14 calendar days. Transnet may then continue, propose amendments, or terminate if the decrease is not remedied within 365 days.
• Failure to notify Transnet of a decrease in B-BBEE ownership within 14 days constitutes a material breach.

Security: The contractor and its personnel must comply with Transnet's security integrity assessments and relevant security regulations (including MISS, MPSS, National Key Points Act, etc.).

Safety File: Required for sites not listed in Annexure H.

Safety File: The contractor must maintain a safety file as required by Transnet's internal safety, security, confidentiality, and access procedures for processing and removal of assets from Transnet sites.

Site inspection: Before starting work, the site is inspected jointly to establish a safe operating procedure in writing and signed by both parties.

Access: The contractor and its representatives are granted access to Transnet sites subject to compliance with safety and security procedures.

Hazardous substances: If assets contain hazardous substances, the contractor may partially or wholly reject the Works Order, or apply a deduction to the asset value to cover treatment/disposal costs, which are for Transnet's account.

Waste: If non-ferrous material is present among the assets, the applicable waste percentage is deducted from the initial net weight and shown on the delivery note with photographic evidence.

Hazardous substances: As above, the contractor may reject or partially accept Works Orders containing hazardous assets; disposal costs are Transnet's responsibility.

Term: The agreement runs for five (5) years from the signature date, and may be extended by Transnet with 30 days written notice.

Termination: Either party may cancel the agreement on twelve (12) months written notice.

Force majeure: Events beyond reasonable control, excluding third-party supplier failures unless they are themselves force majeure. Either party may terminate if force majeure continues for 60 or more working days in any 120 working-day period, or 120 consecutive working days.

Cession: The contractor may not cede or delegate its rights without Transnet's prior written consent.

Dispute resolution: Negotiation for 21 business days, then referral to AFSA arbitration in Johannesburg.

Notices: Valid notices may be hand-delivered, posted, or emailed to the domicilium address.

Entire agreement: The agreement plus supplementary documents constitutes the whole agreement; no amendment unless in writing and signed.

Severability: Any invalid provision does not affect the remainder.

Eligibility: Bidders must be scrap dealers/recyclers, primary steel producers/smelters, or foundries. They must be able to consume the ferrous scrap metal within South Africa. A signed and completed Non-Disclosure Agreement (Annexure F) must be returned with the bid response.

Confidentiality obligations: All confidential information received from Transnet must be kept secret and used only for evaluating or performing under the bid. Disclosure to third parties requires Transnet's written consent, except to agents who need it for the bid and who are bound by confidentiality. Unauthorised disclosure must be reported promptly. Confidential information remains Transnet's property. On written demand, the bidder must return or destroy all confidential information within 7 days and provide a director-signed certificate of compliance. Confidentiality obligations continue for 5 years after bid discussions end. The bidder acts as principal and bears its own costs. No announcements about the bid may be made without the other party's consent. South African law governs the agreement.

Closing date: 30 November 2026 at 14:00

No briefing session, site visit or clarification deadline is stated in this document.

Eligible bidders: scrap dealers/recyclers, primary steel producers/smelters, and foundries.

Bidders must have the operational capacity to collect, transport, weigh, process and recycle ferrous scrap from designated Transnet sites.

Performance is measured against service level requirements and KPIs; no minimum qualifying score is stated in this document.

The Purchaser is responsible for the collection, purchase, loading, transportation, processing and recycling of ferrous scrap sold by Transnet.

Scrap collection:

• Collect ferrous scrap from designated Transnet sites.
• Provide labour, equipment, vehicles and supervision for loading and transportation.
• Separate material categories where required.
• Remove scrap within agreed timelines.
• Share collection documents per load with Transnet on a daily basis.
• Keep stock of reclaimable separated material; all collected scrap components must be spoiled or damaged.

Transportation:

• Loads must be covered and secured.
• Comply with all applicable road traffic legislation.
• Vehicles must have tracking devices and live recording of loaded scrap during transportation.

Weighing:

• Weigh all scrap on certified, calibrated weighbridges.
• Allow Transnet representatives access to verify weighing.
• Supply weighbridge tickets for every load removed.

Processing:

• Process scrap in accordance with environmental regulations.
• Recycle or reuse material responsibly.
• Separate and record reclaimable material identified by Transnet.

Service level requirements:

• Scrap removal turnaround: timeline agreed on works order; 90% compliance target.
• Stockpile management: maximum accumulation period 30 days; site housekeeping 100% compliance.
• Vehicle management: 100% roadworthy, valid SA licence, GPS tracking, driver inductions completed, video footage of weighing empty and loaded truck. Drivers must be South Africans.
• Communication: respond to emails within 48 hours, calls and text messages within 24 hours; 95% performance target.

Reporting:

• Submit a monthly performance report by the 5th working day of each month.
• Include operational (total tonnage, site-specific tonnage, collections completed, outstanding collections), financial (value of scrap purchased, payments made, outstanding invoices), safety (incidents, near misses, corrective actions) and environmental (spills, complaints, corrective actions) information.

Reporting and audit requirements:

• Monthly reports must cover operational, financial, safety and environmental information.
• Transnet may conduct site inspections, audit weighing records, verify recycling facilities and audit financial transactions.
• Unrestricted access to records relevant to contract performance is required.

Payment terms:

• The Purchaser pays the offered contract price per metric tonne to the relevant operating division.
• Payment is due before release of material or as stipulated in the contract.
• Proof of payment must be submitted before collection.

Revenue assurance:

• All payments must be traceable through banking records, reference load numbers and site origin, and match verified weighing records. 100% payment compliance required.

Penalties:

• Failure to collect within SLA: 1% of monthly contract value per occurrence.
• Late reporting: R5,000 per occurrence.
• Uncalibrated weighbridge use: immediate suspension.
• Safety breach: immediate stop work instruction.
• Environmental breach: cost recovery plus penalty.
• Payment default: interest plus suspension of collections.

No CSD, tax clearance, B-BBEE level, CIDB grade, or local content requirements are stated in this document.

Eligibility:

• Bidders must be scrap dealers/recyclers, primary steel producers/smelters, or foundries.
• Drivers must be South Africans.

Operational compliance:

• Comply with the Occupational Health and Safety Act and all relevant OHS legislation.
• Conduct task-based risk assessments and provide mandatory PPE to all workers.
• Weighbridges must have valid calibration certificates renewed every 2 years.
• Maintain 100% roadworthy vehicles with valid SA licences.
• Comply with environmental permits and legislation.
• Report theft to police and Transnet within 24 hours.

Transformation reporting (optional):

• Report on local supplier spend, SMME participation, employment created, skills development initiatives and B-BBEE compliance status where applicable.

Health and safety:

• Comply with the Occupational Health and Safety Act.
• Conduct task-based risk assessments.
• Provide mandatory PPE to all workers.
• Only trained personnel may enter operational areas.
• Zero fatalities, lost time injuries, environmental incidents and reportable spills.
• Reporting of incidents, near misses and corrective actions is required monthly.

Environmental compliance:

• Prevent pollution incidents.
• Remove all generated waste.
• Contain oil leaks and spills.
• Comply with environmental permits and legislation.
• Process scrap in accordance with environmental regulations.
• Recycle or reuse material responsibly.
• Separate and record reclaimable material as identified by Transnet.
• Performance target: zero environmental incidents and reportable spills.

Contract duration: 5 years, as per the SLA.

Performance management escalates through four levels:

• Level 1: written warning; corrective action plan within 5 working days.
• Level 2: repeat failure for two consecutive months may lead to termination of the works order and reissuing to another contractor.
• Level 3: material breach triggers contract review.
• Level 4: contract termination.

Breaches include safety violations, unauthorised scrap removal, fraudulent weighing, payment defaults, environmental incidents and theft.

Transnet has audit and inspection rights, including unannounced inspections.

Operational meetings: site operations meetings (frequency depends on OD arrangement), contract review quarterly, executive review bi-annually.

Service credits and penalties apply as listed in the financial section.