The stabilisation of Transnet will be accelerated through third-party access, according to the South African government. Photo: File
The South African Association of Freight Forwarders (Saaff) head of Research and Development, Dr Jacob van Rensburg, said some critical matters emerged from President Cyril Ramaphosa's State of the Nation Address last week, notably that the Freight Logistics Roadmap (FLR).
The FLR provides a clear strategic vision and that leveraging private capital is crucial to modernising the logistics network.
"However, while this commitment is positive, there was little mention of immediate, binding milestones to accelerate reform. The FLR alone is not enough—we need decisive restructuring of key inefficiencies right now. Furthermore, Transnet’s structural constraints and governance challenges remain unaddressed, and this must be urgently tackled," he said.
Van Rensburg said the commitment to open-access rail is a milestone, as it finally allows private players onto Transnet’s rail network.
"However, the process is moving too slowly, and potential operators still face operational roadblocks. Transnet remains the network manager, but where are the detailed rules, tariffs, and timelines for operationalising this system? We call for fast-track regulatory approvals to ensure open access is a reality within months, not years. This must include fair, transparent pricing mechanisms for rail access to attract investment and restore rail’s competitiveness," he said.
Saaff said the acknowledgement of port inefficiencies is crucial, and the urgency around equipment procurement is welcomed. Ports need modernisation, and this commitment is long overdue. However, on equipment procurement, decisiveness is needed. How many cranes? How soon? Which ports? There is no detail on procurement timelines, and without concrete delivery schedules, the risk of delays remains, it said.
"Ultimately, the President is saying the right things, but now is the time for action. Freight logistics and port efficiency must improve now—not in three to five years. Public-private partnerships (PPPs) must be expanded beyond isolated deals and rolled out comprehensively across ports and rail corridors. Infrastructure investments are welcome, but execution must be transparent, efficient, and accountable. The time for discussion is over. Now is the time for tangible, measurable action," Van Rensburg said.
The Association of Southern African Travel Agents CEO, Otto de Vries, said the focus on modernising South Africa’s airports and increasing flights to key destinations was essential to improving connectivity for travellers.
"We look forward to further engagement on how these developments will support and expand outbound travel opportunities for both corporate and leisure travellers. Air access and the facilitation of easier business and leisure travel for South Africans remain critical, particularly in strengthening trade connection.“ he said.
Ramaphosa on Transnet and Prasa
Transnet and the Passenger Rail Agency of South Africa (Prasa) will be among the beneficiaries of the R375 billion from the R100bn earmarked for infrastructure development, which includes the expansion of ports, Ramaphosa said in the speech.
Ramaphosa said the stabilisation of Transnet, which will be accelerated through third-party access, with the finalisation of the Network Statement in December last year.
Ramaphosa said open access to the rail network will allow train operating companies to increase the volume of goods transported by rail, while the network infrastructure remains state-owned. This would ensure that South African minerals, vehicles, and agricultural produce reach international markets, securing jobs and generating revenue for the fiscus.
"Transnet's performance has stabilised and is steadily improving. New cranes and other port equipment are being commissioned to speed up the loading and unloading of cargo and reduce waiting times for ships in our ports. We are on track to implement a new, modern, and transparent mining rights system this year, which will unlock investment in exploration and production. We are revitalising our port terminals and rail corridors through the Freight Logistics Roadmap, leveraging private capital to restore them to world-class standards," Ramaphosa said.
By supporting the agricultural industry, improving the logistics network, enhancing rural supply chains, and opening new export markets, the country could significantly expand its agricultural sector.
"Working with international partners, we are revitalising small harbours, unlocking economic opportunities for coastal communities. Our immediate focus is to enable Eskom, Transnet, and other state-owned enterprises that are vital to our economy to function optimally," he said.
He added that the government was repositioning these entities to provide world-class infrastructure while enabling competition in operations, whether in electricity generation, freight rail, or port terminals.
On Prasa, Ramaphosa said the government would, over the next five years, restore Prasa’s signalling system to ensure that new trains can be fully utilised and that commuters can rely on safe, affordable, and timely transport.
"In making our cities work for their residents, we will restore the remaining passenger rail corridors and stations to full service. More than 80% of passenger rail corridors have been returned to service. Prasa has introduced over 200 modern, locally produced trains on its network to provide a low-cost option for public transport," he said.
Furthermore, an improved rail network would support the establishment of an enabling policy and regulatory framework for critical minerals, which, if beneficiated in the country, could help utilise the wealth beneath the soil for the benefit of the people.
"This represents a fundamental rethink of how the state delivers housing at scale while turning our cities into engines of growth and opportunity," he said.
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