Amid a new sense of urgency over a R500bn loss to the economy, the Cabinet will soon be shown a plan to increase private sector involvement in SA's railways and ports.

The troubled logistics sector is headed for a fundamental shift if a plan by the Presidency is implemented. The plan would weaken Transnet's monopoly and promote competition by increasing the private sector's participation in the running of South Africa's rail network and ports.

The Presidency and organised business, with help from logistics experts, have drafted a plan that seeks to reverse the dysfunction of the railways and ports in the hands of Transnet.

The dysfunction is estimated to have cost the economy at least R500-billion since 2010 and worsened SA's fiscal crisis, which is pushing the government to consider raising taxes and cutting expenditure.

Most of the reform proposals included in the 124-page Roadmap for the Freight Logistics System in South Africa are not new, as they complement policy initiatives already approved by the Cabinet.

However, there is now a sense of urgency and greater support for the plan in government circles, including the Treasury, the Department of Transport and the Department of Public Enterprises.

"There's a broader recognition that South Africa's logistics crisis is deep and there is no more time to waste," said a source in organised business who worked on the plan.

Underscoring the logistics crisis are...