By Eamonn Ryan
South Africa’s logistics sector may finally be edging away from its downward slide, yet celebrations remain premature.
While wholesale engagement from both the private and public sectors has brought momentum, Transnet continues to grapple with persistent shortcomings even as signs of recovery emerge.
The milestone 250th edition of the Cargo Movement Update (CMU), produced by the South African Association of Freight Forwarders (SAAFF) alongside Business Unity SA, marks what Dr Jacob van Rensburg, Saaff’s head of research and development, calls “an important marker” for the sector.
Van Rensburg emphasises that the CMU demonstrates “the value of sustained monitoring and benchmarking progress”, noting its role in energising collaborative improvement initiatives now shaping South Africa’s logistics landscape.
His view echoes that of Transnet board chair Dr Andile Sangqu, who, at the release of the utility’s financial-year results on September 5, remarked that “Transnet is not yet out of the woods.”
Still, the numbers tell a cautiously encouraging story. For the first time in years, throughput performance across rail, ports, pipelines and automotive shipments has lifted. Rail freight volumes reached 160.1 million tonnes, ports handled 4.09 million TEUs, pipelines carried 13.37 billion litres, and the automotive division moved just over 803 900 vehicles.
Van Rensburg acknowledges this turning point but tempers enthusiasm: “These achievements are notable, but they also reveal that Transnet still missed most of its core targets. A long road lies ahead in re-establishing reliability and efficiency across the network.”
Financials mirror this mixed picture. Losses narrowed significantly, down 74% to R1.9-billion. Yet high debt, irregular expenditure, and ongoing litigation cast a shadow.
More encouraging is the sharp rise in capital expenditure – up 44.2% to R24-billion – with much of it channelled into port equipment and infrastructure upgrades. “This level of investment is reassuring and represents a crucial step in rebuilding confidence and competitiveness in South Africa’s ports,” Van Rensburg stresses.
Although the figures released cover the period ending March 31, early trends in the current financial year suggest further incremental improvements. Should that trajectory hold, the 2026 results could mark another chapter in reversing the sector’s fortunes.
Source: Freight News