Adapt or Be Left Behind: Creecy Warns Transport Sector as Neighbours Target SA’s Logistics Weaknesses

Why It Matters

South Africa’s rail and port underperformance is no longer being treated as an isolated operational problem. Creecy has linked it directly to trade, jobs and national competitiveness, while warning that neighbouring countries are ready to capitalise on the country’s logistics vulnerabilities.

The reform programme now has defined delivery markers: 11 private Train Operating Companies are due to begin operations in April 2027, the freight target is 250 million tonnes by 2030, and PRASA is aiming for 600 million passenger trips by 2030/31. The policy direction is clear, but the scale of the recovery will depend on delivery across freight rail, passenger rail and the wider transport system.

South Africa’s logistics weaknesses have made the country vulnerable – and neighbours are ready to exploit the situation. That’s according to Transport Minister Barbara Creecy, who delivered the opening address at the 2026 Southern African Transport Conference.

Speaking on 6 July under the theme “Developing and Sustaining Transport Systems in an Uncertain World”, Creecy warned that South Africa’s transport failures have moved beyond operational inconvenience and now threaten trade, jobs and national competitiveness.

Creecy said transport disruption damages the entire economy. “These disruptions ripple through passenger journeys, freight movements, and the efficiency of supply chains that support our economy. When transport faces disruption, market efficiencies are compromised, and the sector’s capacity to add value to goods, to jobs, and to social well-being is undermined.”

Creecy’s most direct warning was that South Africa’s logistics underperformance is handing an advantage to regional competitors.

“In the South African context, years of under-investment in logistics infrastructure and the post-pandemic downturn in rail and port performance have led to increased competition from our neighbours, who threaten to capitalise on our logistics vulnerabilities,” she said.

Rail reform takes centre stage

Creecy said rail and port reform are now “at the centre of government’s agenda for the transport sector”. The priority, she said, is to rebuild rail as the foundation of freight movement.

“Our ambitious reforms in the rail space seek to re-establish rail as the backbone of the freight logistics system,” she explained.

According to Creecy, a strategic shift from road to rail is essential in South Africa. “Increased utilisation of rail transport enhances road safety, decreases congestion on our roads, reduces wear and tear on road surfaces, and, critically, is responsible for lower CO2 emissions,” she noted.

The most significant reform is the opening of the national rail network to private train operators. Creecy confirmed that 11 private Train Operating Companies were approved in March to access the network.

“These TOCs will bring their expertise and capital to rail operations, whilst the network will remain state-owned and belong to the people of South Africa,” she said.

Operations are due to commence in April 2027. “These operators will contribute significantly to government’s objective of moving 250 million tonnes of freight on the Transnet rail network by 2030,” she added.

Passenger rail recovery gathers pace

Creecy said passenger rail is showing measurable recovery after the collapse that followed the Covid pandemic and widespread vandalism. She said 35 of 40 priority rail lines have been recovered over the past two years.

“In the 2020/21 financial year, in the immediate aftermath of the Covid pandemic and widespread vandalism and destruction of rail infrastructure, the Passenger Rail Agency of South Africa (PRASA) recorded 10 million passenger trips. By the end of the 2025/26 financial year, 101 million passenger trips were recorded,” she said.

The aim is to reach 600 million passenger trips by 2030/31, in line with pre-pandemic passenger figures.

The locally manufactured blue iSitimela saBantu “People’s Train” has been introduced on recovered lines. “The provision of passenger rail to working-class South Africans is a socioeconomic imperative,” Creecy pointed out.

Technology and energy shift the agenda

Creecy said transport reform can no longer be separated from climate resilience, cleaner fuels and digital systems.

“Underpinning our current reform agenda is the notion that we cannot continue with a business-as-usual approach to the challenges that we face. If we do not adapt to the current geopolitical realities with which we are confronted, we will be left behind.”

She pointed to Ngqura’s Liquid Gas Terminal, progress on the Boegoebaai Port, green hydrogen plans and work on sustainable aviation fuels as signs that transport is becoming central to South Africa’s energy transition.

“At a broader level, the Department and its 20 entities will work together to develop a single digitised transport sector platform that will host all online permitting services through a common citizen interface,” she said.

Reform now faces the delivery test

Creecy closed by making it clear that the scale of reform required will demand coordination across government, industry and investors, not simply policy ambition.

“In closing, I reiterate our collective vision: a transport system that is integrated, sustainable, resilient, and inclusive; that strengthens our economy, safeguards our environment, and serves all South Africans with dignity and efficiency.

“The road ahead will demand steadfast leadership, prudent policy, and sustained investment. With your partnership, we can deliver a transport future that is robust against uncertainty and beneficial to every citizen,” she concluded.