Ramaphosa Calls for Permanent Transport Council as SA Pushes Logistics Reforms

“To build the partnership that this vision requires, we should consider establishing a permanent Transport Council,” Ramaphosa told delegates.

President Cyril Ramaphosa has called for the creation of a permanent national Transport Council to strengthen collaboration between government, business and labour as South Africa accelerates reforms to modernise its transport and logistics system.

Speaking at the inaugural National Transport Conference held at the Gallagher Convention Centre in Midrand, the President said the event should represent a turning point for the country’s transport sector, urging stakeholders to work together to overcome longstanding logistical challenges that are costing the economy billions.

The proposed council would bring together government departments, private sector companies, passenger transport operators and freight logistics providers across road, rail, air and maritime sectors to coordinate policy, investment and operational reforms.

“To build the partnership that this vision requires, we should consider establishing a permanent Transport Council,” Ramaphosa told delegates.

Logistics Bottlenecks Cost Economy Nearly R1 Billion a Day

The President warned that inefficiencies in the country’s logistics system are placing a heavy burden on the economy.

According to government estimates, logistics constraints are costing South Africa nearly R1 billion every day, reducing export competitiveness, increasing costs for businesses and slowing economic growth.

“Transport is vital to our economy and our people,” Ramaphosa said.

“When our transport arteries are blocked or inefficient, growth stalls, costs rise and opportunity diminishes. When they flow freely, the country thrives.”

South Africa’s logistics sector has faced persistent challenges in recent years, including rail capacity constraints, port congestion, infrastructure maintenance backlogs and security-related disruptions affecting freight corridors.

Transport Reform Central to Economic Recovery Plan

Government has placed transport reform at the centre of its Medium-Term Development Plan, identifying the sector as a critical driver of economic recovery, trade competitiveness and job creation.

Two major policy frameworks underpin the reform programme:

• National Rail Policy (2022) – aimed at restructuring the rail sector and opening infrastructure access to private operators.• National Freight Logistics Roadmap (2023) – focused on restoring rail as the backbone of South Africa’s freight system while improving coordination between rail, road and ports.

These reforms are intended to reduce pressure on road transport, improve export capacity and lower logistics costs for businesses.

Rail Network Opening to Private Operators

A key milestone in the reform process is the opening of South Africa’s rail infrastructure to private operators through the establishment of the Transnet Rail Infrastructure Manager.

Under the new system, private freight operators will be able to run trains on the national rail network through a slot allocation system.

So far, train slots representing 24 million tonnes of freight capacity per year have been conditionally allocated to 11 train operating companies.

Government expects the first private rail operator to begin operations in April 2027, marking a significant shift toward a competitive rail freight market.

Ambitious Freight Targets for 2029

The government has also set an ambitious target to increase freight volumes transported by rail to 250 million tonnes by 2029.

This represents a significant increase from the 160 million tonnes moved during the previous financial year.

Expanding rail capacity is expected to ease congestion on major road corridors, lower carbon emissions and reduce logistics costs for key export sectors such as mining, agriculture and manufacturing.

National Logistics Crisis Committee Driving Improvements

President Ramaphosa said early progress is already visible through the work of the National Logistics Crisis Committee (NLCC).

The committee was established as a public–private partnership platform to coordinate urgent interventions aimed at stabilising and improving operations across the country’s logistics network.

The NLCC has been working with government departments, Transnet, port authorities and industry stakeholders to address bottlenecks on strategic freight corridors, improve port performance and enhance operational efficiency.

Transport Sector Key to Jobs and Investment

Ramaphosa emphasised that a modern and efficient transport system is fundamental to unlocking economic growth, attracting investment and creating employment opportunities.

An improved logistics network will also support regional trade integration across the Southern African Development Community (SADC) by enabling faster and more reliable movement of goods across borders.

“It will lower the cost of doing business, attract investment and create jobs,” the President said.

“It will strengthen regional integration and make our economy more competitive.”

Conference to Shape the Future of Transport Policy

The inaugural National Transport Conference brings together policymakers, logistics companies, transport operators, organised labour, academics and investors to discuss long-term reforms needed to modernise South Africa’s transport ecosystem.

The President said the conference provides a crucial platform for stakeholders to place transport at the centre of South Africa’s economic growth strategy and to help build a more inclusive, resilient and efficient transport system.