Why it Matters
South Africa’s freight logistics reform programme is moving from policy development into implementation, with private rail operators expected to begin using the freight rail network from April next year. For exporters, the shift is directly linked to cost, reliability, market access and the country’s ability to compete with regional logistics corridors.
The reform agenda also places renewed focus on Transnet’s rail volumes, port governance and infrastructure investment. Planned capacity expansion at the Port of Cape Town, together with the establishment of the Transnet Infrastructure Manager and Transport Economic Regulator, forms part of a wider effort to improve the performance of South Africa’s rail and port system.
South Africa’s freight logistics reform programme is moving towards implementation, with private rail operators expected to begin operating on the country’s freight rail network from April next year.
Minister of Transport Barbara Creecy outlined the reform priorities during a keynote address hosted by Exporters Western Cape in Cape Town, where exporters, logistics stakeholders and industry leaders were briefed on government’s plans to improve the efficiency of South Africa’s rail and port infrastructure.
Creecy said an efficient and cost-effective logistics system is essential to supporting exports and improving South Africa’s ability to move produce and goods to international markets. She acknowledged that the country’s logistics network has faced significant challenges in recent years, particularly following the COVID-19 pandemic, while also noting increased competition from regional ports, including Maputo and Walvis Bay.
According to the Minister, progress has been made since the adoption of the National Freight Logistics Roadmap in 2023. This includes the introduction of Transnet’s first network statement, the opening of rail operations to private operators and the establishment of the Transnet Infrastructure Manager.
The government has also established the Transport Economic Regulator, with the promulgation of regulations by the President expected to allow for the appointment of a chief executive officer.
Increasing rail volumes remains a central priority. The government is targeting 250 million tonnes on the Transnet network in the future, while Transnet is expected to move around 168 million tonnes of freight by rail this year.
Creecy also outlined plans to establish Transnet National Ports Authority as an independent state-owned entity, with the aim of enabling greater reinvestment of port revenues into infrastructure development.
At the Port of Cape Town, current investment plans include expanding container terminal capacity from one million TEUs to 1.4 million TEUs, alongside the introduction of new equipment such as remotely operated ship-to-shore cranes and rubber-tyred gantries.
The Minister also referred to the impact of severe weather on the recent fruit export season and said work was underway to improve recovery processes and operational responsiveness.
Exporters Western Cape Chairman Terry Gale said the engagement provided exporters with direct insight into government policy and reform initiatives affecting the freight and logistics sector. He said reliable and efficient logistics remain critical to export growth and South Africa’s competitiveness in global markets.
