SA Targets 24 MT of Freight Shift as Govt Accelerates Rail, Port and Logistics Reforms

Addressing Parliament, Creecy said efficient transport and logistics systems are essential for restoring South Africa’s competitiveness and enabling inclusive economic growth.

South Africa is intensifying efforts to modernise its transport and logistics infrastructure as the government pushes ahead with ambitious reforms aimed at boosting exports, strengthening economic competitiveness and driving long-term sustainable growth.

Transport Minister Barbara Creecy announced on Tuesday that South Africa plans to move up to 24 million tons of freight annually from 1 April next year, marking a major milestone in the country's logistics reform agenda.

The announcement formed part of the Department of Transport's R102 billion Budget Vote for the 2026/27 financial year, tabled in Parliament with a strong focus on rail, port, freight and mobility infrastructure transformation.

Government Sees Logistics Reform as Key to Economic Recovery

Addressing Parliament, Creecy said efficient transport and logistics systems are essential for restoring South Africa's competitiveness and enabling inclusive economic growth.

"An effective and efficient transport, mobility, and logistics system will unlock opportunity, restore competitiveness, reduce inequality and enable inclusive growth," the Minister said.

The government views logistics and mobility reform as one of the most critical pillars for:

• Economic expansion

• Export growth

• Industrial recovery

• Job creation

• Revenue generation

The reforms are particularly important as South Africa seeks to improve the movement of:

• Minerals

• Agricultural products

• Manufactured goods

• Vehicles

• Industrial commodities

to international markets.

Private Train Operators to Enter South Africa's Rail Network

One of the major developments announced by Creecy is the upcoming introduction of private Train Operating Companies into South Africa's freight rail system.

According to the Minister, the Transnet Rail Infrastructure Manager (TRIM) will soon announce the names of the first 11 private train operators selected to help increase export volumes and improve freight movement efficiency.

The initiative forms part of broader rail sector liberalisation efforts aimed at:

• Increasing rail network utilisation

• Attracting private investment

• Reducing congestion

• Improving export corridor reliability

Analysts say private participation could significantly improve rail performance in a sector that has struggled with infrastructure deterioration, operational inefficiencies and capacity constraints.

South Africa Facing Regional Competition in Infrastructure

Creecy warned that South Africa faces increasing competition from neighbouring countries investing aggressively in rail and port infrastructure.

"Consequently, logistics and mobility reform must be at the heart of our programme for long-term, sustainable economic growth," she said.

She noted that improved rail and port infrastructure is already producing benefits including:

• Higher export throughput

• Better network reliability

• Job creation

• Reduced emissions

The government believes stronger logistics performance is critical for maintaining South Africa's role as a regional trade and industrial hub.

Durban Container Terminal Expansion Reaches Financial Close

A major highlight of the transport infrastructure programme is the Durban Container Terminal Pier 2 Concession, which has now reached financial close.

According to Creecy, the project will increase port handling capacity from:

• 2.0 million TEUs annuallyto

• 2.8 million TEUs annually

TEU (Twenty-Foot Equivalent Unit) is the standard global measurement for container handling capacity.

The Minister described the project as a successful model for future public-private partnerships in South Africa's infrastructure sector.

More Public-Private Logistics Projects Moving to Market

Several major logistics and infrastructure projects are expected to move forward this year through increased private sector participation.

Projects highlighted by the Minister include:

• Ngqura Manganese Export Corridor

• Richards Bay Dry Bulk Terminal

• Gauteng–eThekwini Container Corridor

These initiatives are aimed at strengthening freight movement across key industrial and export corridors.

Infrastructure economists say public-private partnerships are becoming increasingly important for financing and modernising South Africa's logistics systems amid fiscal constraints.

Government Approves Billions for Rail and Port Infrastructure

Creecy revealed that through the Budget Facility for Infrastructure, government has already approved:

• R16.8 billion in public investment

for execution across:

• Coal export lines

• Iron ore rail corridors

• Port infrastructure projects

In addition, applications for another:

• R23.6 billion

are currently under development.

The investments are expected to improve:

• Freight efficiency

• Export competitiveness

• Industrial output

• Infrastructure resilience

Aviation Sector Continues Strong Recovery

South Africa's aviation industry is also showing strong recovery momentum following years of global travel disruption.

According to Creecy:

• Airports Company South Africa (ACSA) recorded 37.498 million passenger arrivals and departures over the past year

• This marks a significant increase from 34.508 million recorded previously

The government is targeting:

• 42 million passengers

• 1.2 million tons of air freight

through the ACSA network by 2029.

Air Cargo Infrastructure Investment Planned

The Minister said strategic investment in air cargo infrastructure is scheduled to begin in March 2027.

The aviation logistics strategy will focus on high-value cargo sectors including:

• Pharmaceuticals

• E-commerce

• Aerospace and defence

• Perishable goods

• Diamonds and metals

• Automotive components

Officials believe stronger air freight capabilities could significantly improve South Africa's role in global high-value trade networks.

Taxi Industry Recognised as Major Economic Sector

Creecy also highlighted the importance of South Africa's taxi industry, describing it as:

• One of the country's largest black-owned sectors

• A vital component of the national transport system

The taxi industry is estimated to generate annual revenue between:

• R60 billion and R100 billion

and contributes approximately:

• 1.4 percent of GDP

Transport Economic Regulator to Be Formally Established

The Minister announced that the government will formally establish the Transport Economic Regulator during the new financial year.

The regulator will independently determine:

• Port tariffs

• Rail access fees

with the aim of ensuring fair competition and transparent pricing across transport systems.

Industry observers say independent regulation could help improve investor confidence and reduce concerns around pricing fairness.

Taxi Recapitalisation Programme Under Review

Government is also reviewing the Taxi Recapitalisation Grant, which supports the transition toward safer and more compliant vehicles within the taxi sector.

The programme aims to:

• Improve vehicle safety

• Encourage regulatory compliance

• Modernise taxi operations

Creecy said discussions are underway between:

• Government

• Taxi associations

• Financial institutions

to reduce financing risks and improve affordability for taxi operators purchasing new vehicles.

Cashless Taxi Pilot Signals Industry Modernisation

The South African National Taxi Council has already piloted a cashless taxi route in Gauteng, an initiative viewed as an important step toward:

• Modernising the sector

• Improving safety

• Reducing cash-related crime risks

• Formalising transport operations

Analysts say digital payment systems could significantly transform the minibus taxi industry over time.

Logistics Infrastructure Central to South Africa's Growth Strategy

The government's broader transport strategy reflects growing recognition that efficient logistics systems are critical for:

• Export competitiveness

• Industrial growth

• Supply chain resilience

• Foreign investment attraction

• Economic recovery

South Africa's rail and port systems have faced persistent challenges in recent years including:

• Infrastructure deterioration

• Congestion

• Operational inefficiencies

• Theft and vandalism

• Capacity constraints

Officials believe the new wave of reforms and investments could significantly improve the country's economic outlook if implemented successfully.

South Africa Seeking Long-Term Competitive Advantage

Creecy stressed that logistics reform is not only about infrastructure modernisation but about securing South Africa's long-term economic competitiveness in an increasingly competitive regional and global environment.

The government hopes the combined investments in:

• Rail

• Ports

• Aviation

• Public transport

• Freight corridors

will strengthen economic resilience while creating jobs and expanding trade opportunities.

As South Africa accelerates efforts to modernise transport systems and attract private investment, the logistics sector is increasingly being viewed as one of the country's most important levers for sustainable economic growth.