It’s no secret that SA logistics infrastructure has been a major problem for our economy.
From rail to ports, the system meant to keep goods moving has become one of the biggest handbrakes on growth. Transnet has been a nightmare for so many companies. Years of mismanagement, underinvestment, and corruption have turned what should be a national asset into a national liability.
Exporters – from mining giants to citrus farmers – have suffered delays, lost contracts, and rising costs due to unreliable rail and port services.
Manufacturers have increasingly been forced to turn to road transport, which is more expensive and less efficient, further eroding competitiveness.
The knock-on effects are huge…
Lower tax revenues, lost jobs, and rising frustration from global trading partners.
After mounting pressure from business and labour groups, government finally started to acknowledge the urgency. Over the past year, there’s been a renewed will to fix logistics – especially rail and ports – as part of unlocking broader economic growth.
Driving this shift is public-private partnerships (PPPs). Transnet has opened the door to private sector investment and participation in operating key rail routes and terminals – something unheard of just a few years ago.
And dare I say, there are some green shoots starting to spring…
Firstly, a recent article in Business Day reported that South Africa’s ports handled more than 100,000 twenty-foot equivalent units (TEUs) in week 16 of the current financial year – matching volumes last seen in 2017/2018. That’s no small feat after years of steady decline.
What’s particularly encouraging is the improvement at Transnet’s crown jewel: Durban Container Terminal Pier 2 (DCT2). DCT2 handles 72% of the Port of Durban’s throughput and almost half of SA’s total container traffic. Recent investments in new equipment and the refurbishment of existing fleets are already showing results. For the first time in years, the port network is congestion-free, and turnaround times are improving.
Transnet has also ramped up efforts at the Port of Cape Town and key Eastern Cape terminals, where equipment upgrades and operational tweaks have started to ease some long-standing bottlenecks.
Small wins on the rails for JSE-listed miners…
Kumba Iron Ore offers a glimpse of what’s possible when there’s at least some improvement in rail service. Transnet has managed to improve iron ore shipments to port – not without a great deal of help from the private sector and this has helped Kumba grow sales by 3% in the first half of 2025, even though production actually declined by 1%. That speaks volumes about how much lost value lies in the logistics system alone.
Meanwhile, coal exporter Thungela also flagged encouraging logistics news in its recent pre-close update for the six months to June. The company reported a 17% year-on-year improvement in rail performance, thanks largely to private sector involvement, which has helped address issues that government alone has struggled to fix.
Of course, logistics reform in SA is still in the early innings – and plenty can still go wrong. But for the first time in years, we’re seeing signs of real momentum thanks largely to private sector-led collaborative initiatives. SA business stepping in to solve public sector problems is a theme that’s becoming all too familiar, and all too necessary.
Nevertheless, if these early signs of improvement can be scaled – and sustained – it could have a meaningful impact on export-heavy sectors like mining and agriculture and therefore, our economy. It will also boost exporter’s revenues and profits making commodity companies attractive investments again.
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