he South African government is taking decisive action to revitalise the logistics sector, recognising its crucial role in driving economic growth and global competitiveness.
Transport Minister Barbara Creecy outlined the government’s ambitious plans during the launch of the World Bank report, Driving Inclusive Growth in South Africa: Quick Wins with Competitive Markets and Efficient Institutions.
“We have established the National Logistics Crisis Committee (NLCC), which brings together representatives from the Presidency, various government departments, and the private sector,” Creecy said.
The committee is focused on improving strategic logistics corridors essential for exports and economic expansion, reducing backlogs at border crossings, tackling congestion on major highways like the N1 and N3, and addressing key infrastructure issues such as cable theft and maintenance at Transnet.
“These collaborative efforts have already led to modest improvements in our logistics performance,” Creecy noted.
Ambitious Freight Targets
The Department of Transport and Transnet have set a bold target of moving 250 million tonnes of freight on the Transnet network by 2030, up from 150 million tonnes in the 2023/24 financial year.
To achieve this, the government is prioritising rail sector revitalisation, a strategy that took shape with the Cabinet’s approval of the White Paper on National Rail Policy in 2022.
“The Rail Policy introduces critical structural reforms to attract private sector investment, optimise rail network usage, and ensure effective economic regulation,” Creecy explained. “A Private Sector Participation (PSP) Unit is being established with the Development Bank of Southern Africa to coordinate private investments in key rail projects.”
The government is actively engaging stakeholders through Requests for Information on potential investments in rail and ports, ensuring transparency and collaboration. “I want to emphasise that all rail and port infrastructure will remain under government ownership. However, private sector expertise and investment are essential for modernising our freight system,” Creecy said.
Enhancing Port Efficiency
To tackle inefficiencies at South African ports, Transnet has launched a robust recovery plan aimed at stabilising port and rail volumes.
“The creation of ‘war rooms’ dedicated to specific corridors and commodities has enabled Transnet and the private sector to jointly tackle challenges such as derailments and maintenance backlogs,” Creecy stated.
Infrastructure renewal is also a priority. “Transnet is rolling out a phased replacement and refurbishment plan for critical port equipment, including cranes, gantries, and straddles. Collaboration with original equipment manufacturers (OEMs) is ensuring that spare parts are readily available, reducing downtime,” she added.
These initiatives are already yielding results, with reduced ship waiting times and improved truck turnaround times at ports.
A Future of Collaboration
Creecy reaffirmed that strategic partnerships between government and the private sector will be key to achieving ambitious logistics targets.
“By 2030, we aim to move 250 million tonnes of freight annually and improve crane moves per hour from the 2024 average of 16 to 30. This requires significant investment in infrastructure, rolling stock, and digital systems,” she emphasised.
“These ambitious goals are achievable, but only through collaboration—where technical expertise, global best practices, and funding are shared for the benefit of South Africa’s economy.”
With bold action and public-private partnerships, South Africa’s logistics sector is on track for a strong and sustainable future.