Transport Minister Barbara Creecy has told Western Cape exporters that private rail operators are expected to start running on South Africa’s freight-rail network from April next year, as the government speeds up efforts to overhaul the country’s logistics system.

The keynote speaker at an Exporters Western Cape event in Cape Town this week, she addressed a packed room of exporters, logistics professionals and industry leaders on government plans to reform the country’s freight rail and port systems.

“The lifeblood of any country’s economy is its logistics system,” she said. “If we are going to be able to get South Africa’s produce out into the world, then it is important that we have an efficient and cost-effective logistics system.”

Competition from neighbouring ports a growing concern

The minister acknowledged South Africa’s logistics network had faced serious problems in recent years, particularly following the Covid-19 pandemic. She also pointed to growing competition from ports elsewhere in the region.

“Once upon a time South Africa’s ports and rail system were the only option available to exporters. Today we have competitors, whether it is Maputo, Walvis Bay or many other ports to the north of us. Complacency is not going to assist us in this context.”

Progress since the 2023 Freight Logistics Roadmap

Creecy said meaningful steps forward had been taken since the National Freight Logistics Roadmap was adopted in 2023. These include the introduction of Transnet’s first network statement, the opening of rail operations to private operators and the creation of the Transnet Infrastructure Manager.

“We have also set up the Transport Economic Regulator and are hoping to see the President promulgate the regulations so that we can appoint a CEO as soon as possible.”

Growing rail volumes remain a top priority, with the government aiming for 250 million tons of freight to be moved on the Transnet network in the future. The transport authority was expected to move around 168 million tons by rail this year.

Cape Town port upgrades underway

Creecy outlined plans to establish the Transnet National Ports Authority as an independent state-owned body, which would allow more port income to be reinvested into building up infrastructure.

She highlighted ongoing investment in the Port of Cape Town, what with the expansion of container terminal capacity from 1 million twenty-foot equivalent units (TEUs) to 1,4 million TEUs as well as the introduction of new equipment, such as remotely operated ship-to-shore cranes and rubber-tyred gantries.

Noting the impact of severe weather on the recent fruit export season, she said, work was underway to improve how operations recover from and respond to such disruptions.

A shift in mindset

Creecy said changing attitudes were among the most important parts of any reform process.

“One of the key issues in any reform process is the issue of attitude,” she said. “Over the past two years we have worked to move from a bureaucratic mindset to one that asks how we can better assist our customers. We have put significant effort into improving collaboration with industry and ensuring that customer needs are reflected in our planning and operations.”

Industry welcomes minister’s engagement

Exporters Western Cape chairman Terry Gale said the organisation was honoured to have hosted the Minister and to give members direct access to information about government policy and reform plans affecting the freight and logistics sector.

“Exporters Western Cape has consistently advocated for greater engagement between industry and government. Having Minister Creecy address our members is a significant opportunity for exporters to better understand the reforms underway and what they mean for the future competitiveness of South Africa’s logistics system. Reliable and efficient logistics are critical to growing exports and strengthening South Africa’s position in global markets.”

Creecy closed her address with a Chinese proverb that she said reflects the reform journey currently underway.

“The best time to plant a tree was 20 years ago. The second best time is now.”

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