By Eamonn Ryan
More than half of South Africa’s freight logistics reforms are not progressing according to schedule.
This is according to the latest Operation Vulindlela Phase II Q4 Progress Report, which shows that 60% of freight logistics reforms are categorised as “delayed/off track, but underway” while 40% are listed as “reform progress on track”. None of the logistics reforms are classified as completed.
Outstanding reforms listed in the report include publication of a revised Network Statement, further requests for proposals for private sector participation in rail and port corridors, and finalisation of the National Rail Bill.
Despite these setbacks, the report highlights that reform momentum is beginning to translate into practical market opening measures, particularly in rail access.
Early private rail access signals shift in freight model
According to the report, the first slot allocation process for 11 private train operating companies could add 20 million tonnes of freight volumes from the 2027/28 financial year and support increased private sector participation in freight rail.
This development is significant for cold chain-dependent exports, as increased rail capacity and competition could reduce reliance on long-haul trucking – currently a major contributor to temperature fluctuation risk and logistics bottlenecks between inland production regions and coastal ports.
The report also projects freight rail volumes to increase to 168 million tonnes in 2025/26 from 160 million tonnes in the previous financial year as Transnet continues implementing its recovery plan. However, government’s medium-term target remains 250 million tonnes moved by rail as part of efforts to shift freight from road to rail.
For the agricultural export sector, the gap between current volumes and the 250 million tonne target represents both risk and opportunity: continued underperformance keeps cold chain costs high, while successful reform could materially lower per-unit export costs and improve reliability into key markets such as the EU, Middle East and Asia.
Institutional reform moves ahead slowly
Among the reforms highlighted in the report, Transnet has submitted a Public Finance Management Act pre-notification application for the establishment of the Transnet Infrastructure Manager (TRIM) as a subsidiary. Government describes this as a milestone in separating rail infrastructure and operations to enable competition in freight rail.
The Transport Economic Regulator (TER) also entered its initial phase of operations on April 1 ahead of full operations from the 2027/28 financial year. Cabinet has meanwhile approved publication of the National Rail Master Plan for public comment. The plan is intended to guide the revitalisation, expansion and modernisation of South Africa’s rail system and support private sector participation.
On the ports side, a detailed implementation plan has been developed for the corporatisation of the Transnet National Ports Authority (TNPA).
Cold chain implications: Efficiency delayed is competitiveness deferred
While the report reflects incremental progress toward liberalised rail access, the fact that 60% of reforms remain delayed underscores a key constraint for export-led agriculture: logistics reform is advancing, but not yet fast enough to reshape the cold chain at scale.
For perishable exports, the difference between road-dominated freight and an integrated, reliable rail-and-port system is measured in shelf life, spoilage rates, and market pricing power. Until reforms translate into consistent rail capacity, predictable scheduling, and seamless port throughput, South Africa’s cold chain will continue to carry structural inefficiencies into its fastest-growing agricultural export segments.
In short, the direction of reform is positive – but the timing of implementation will determine how quickly South Africa’s fruit exporters can fully unlock expanding global demand.