South Africa: Capital Injection and Rail Reform Transform SA's Logistics Sector Into a Growth Engine

Public-private partnerships across South Africa are beginning to show clear business value, with shortened delivery timelines, reduced congestion and improved asset utilisation.

South Africa's transport reset is now visible where it matters most, at the ports and on the rail lines that carry the country's exports and imports. Faster terminals, new capital and private operators are turning logistics from a constraint into a source of competitiveness.

The Durban Port is undergoing significant change, with vessel queues having fallen from as many as 17 to 20 ships in 2023 to about six by March 2026. Transnet's 25-year agreement with International Container Terminal Services brought R11-billion in investment and increased container capacity from two million to 2.8 million. Richards Bay is moving in the same direction, with coal exports holding a 60 million tonne annualised run rate in January, while Transnet seeks a private partner to lift dry bulk terminal capacity by 45%, from 18.5 million to nearly 27 million tonnes a year.

By providing capital, operating discipline and specialist skills while allowing the state to retain strategic control over essential infrastructure, public-private partnerships offer clear business value. They also shorten delivery timelines, reduce congestion and improve asset utilisation. For exporters, miners, retailers and manufacturers, the main gain is throughput, because every hour saved at a port or terminal lowers...

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