South Africa is accelerating logistics and transport reforms aimed at increasing export capacity, improving freight traffic and supporting long-term economic growth, with plans to move 24 million tonnes of freight annually from April 2027.
Speaking during the Department for Transport's budget vote in Parliament on Tuesday, May 12, Transport Minister Barbara Creasy said the reforms would help improve the movement of minerals, vehicles and agricultural products to international markets while strengthening economic competitiveness.
“This will ensure that more South African minerals, vehicles and agricultural products reach international markets, securing jobs and generating much-needed revenue for our finances,” Creasy said.
The Minister also announced that Transnet Rail Infrastructure Manager (TRIM) will soon reveal the names of the first 11 private train operating companies, which are expected to help expand rail freight capacity and export volumes.
Logistics improvements at the center of development plans
“An effective and efficient transport, mobility and logistics system will unlock opportunities, restore competitiveness, reduce inequality and enable inclusive growth,” he said.
Crécy warned that South Africa faced increasing competition from neighboring countries investing heavily in rail and port infrastructure.
“As a result, logistics and mobility improvements must be at the heart of our program for long-term, sustainable economic growth. Improved rail and port infrastructure are already increasing throughput on key export corridors, ensuring better network reliability, and achieving gains in job creation and emissions reduction,” he said.
The Department of Transport introduced a R102bn budget for the 2026/27 financial year, focused on developing a more competitive and inclusive transport system serving freight, passengers and export industries.
It is expected to help operating companies expand rail freight capacity and export volumes.
Rail and port infrastructure projects
Cressy said significant progress has already been made in unlocking investment and infrastructure delivery through public-private sector partnerships.
“The Durban Container Terminal Pier 2 concession has reached financial milestone and will increase port handling capacity from 2.0 million to 2.8 million Twenty-Foot Equivalent Units (TEU) per annum,” he said.
According to the minister, additional private sector partnership projects are expected to come to market this year, including the Ngqura Manganese Export Corridor, the Richards Bay Dry Bulk Terminal and the Container Corridor between Gauteng and eThekwini.
“Through the Budget Facility for infrastructure, R16.8 billion in public investment has already been approved and execution is underway in coal and iron ore lines and port infrastructure. Applications for an additional R23.6 billion are being developed,” Creasy said.
Recovery continues in aviation sector
The minister said the aviation sector has continued a strong recovery momentum, contributing to Airports Company South Africa's target of handling 42 million passengers and 1.2 million tonnes of air freight by 2029.
“Eksa has recorded 37.498 million passenger arrivals and departures so far this year, marking a significant increase from the 34.508 million recorded last year,” he said.
Cressey said the investment in strategic air cargo infrastructure along with a targeted strategy focused on high-value cargo sectors including pharmaceuticals, e-commerce, aerospace and defence, perishables, diamonds, metals and automotive components are expected to begin in March 2027.
Modernization and regulation of the taxi industry
Crécy said the government will formally establish a transport economic regulator during the current fiscal year to independently set port and rail tariffs.
The Department will also conclude a review of the Taxi Recapitalization Grant Program, which aims to support safe and compliant public transit vehicles.
“Work is being done between the department, taxi associations and financial institutions to mitigate the risks associated with the cost of new vehicles and provide affordable finance to taxi operators,” he said.
The minister said formalizing and modernizing the taxi industry remains a key economic priority, noting that the South African National Taxi Council has already piloted a cashless taxi route in Gauteng.
“The taxi industry is an important part of the national transport landscape and is one of the largest black-owned sectors in the country, with annual revenues estimated at between R60 billion and R100 billion, contributing about 1.4% to gross domestic product (GDP),” Creasy said.
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