Transport Minister Barbara Creecy reaffirmed the government’s commitment to revitalizing the logistics industry as a key driver of economic growth. This is Part 1 of a two-part series.
The efficiency of South Africa’s cold chain is directly linked to the country’s broader logistics network. Any disruption in freight movement, rail capacity, or port congestion can have severe implications for temperature-sensitive goods such as fresh produce, pharmaceuticals, and perishable exports. Recognising this, the government is accelerating efforts to strengthen the logistics sector, which is already showing signs of recovery.
Transport Minister Barbara Creecy reaffirmed the government’s commitment to revitalising the logistics industry as a key driver of economic growth. Speaking on Friday at the launch of the World Bank report titled Driving Inclusive Growth in South Africa: Quick Wins with Competitive Markets and Efficient Institutions, she highlighted various measures being implemented to enhance efficiency.
“Government has established the National Logistics Crisis Committee [NLCC] … comprising representatives from the Presidency, various government departments and the private sector,” Creecy stated.
She explained that the NLCC’s work focuses on securing critical logistics corridors, managing key export commodities, alleviating backlogs and congestion at major border crossings, reducing bottlenecks on vital highways such as the N1 and N3, and tackling issues like cable theft and infrastructure maintenance at Transnet.
Creecy noted that these collective efforts have already yielded “modest improvements in our logistics performance.”
A key objective for the Department of Transport and Transnet is increasing freight volumes on the Transnet network to 250 million tonnes by 2030, a significant rise from the 150 million tonnes recorded in the 2023/24 financial year.
Central to this plan is the revitalisation of the rail sector, which was set in motion with the Cabinet’s approval of the White Paper on National Rail Policy in March 2022.
“The rail policy introduces structural reforms in the sector that are intended to enable private sector investment, optimal utilisation of the rail network, and effective economic regulation of rail that will facilitate equitable access to the rail network and ensure that it is properly managed,” she said.
To support this initiative, a Private Sector Participation (PSP) Unit is being established in collaboration with the Development Bank of Southern Africa. The unit will coordinate and guide private investments in priority rail projects requiring capital input.
Source: SAnews.gov.za