By Eamonn Ryan
The following is derived from a SAPICS webinar titled ‘Pre G20 Summit – CRA and SAPICS Risk Briefing’ held on 12 November 2025. The panel consisted of Chris Hattingh, executive director, and Ofentse Donald Davhie, research associate – both of the Centre for Risk Analysis (CRA). This is part four of a five-part series.
South Africa’s geographic position at the southern tip of the African continent makes it a natural hub for global shipping and trade. The Cape route, in particular, has gained strategic significance, offering an alternative to the Suez Canal and connecting Europe, Asia and the Americas through a key maritime corridor. This positioning provides South Africa with the potential to become a major player in global logistics and supply chain networks. Yet, the country’s infrastructure – ports, railways and roads – remains a critical factor determining whether this potential is fully realised.
The Port of Durban, South Africa’s busiest container port, handles more cargo than any other port on the continent. Cape Town, meanwhile, serves as a key trans-shipment hub, with its proximity to the Cape of Good Hope providing strategic value for international shipping. Despite these advantages, operational efficiency remains a challenge. Delays in container handling, limited equipment and maintenance backlogs have historically constrained throughput. Addressing these issues is essential for South Africa to maximise its position as a trade corridor and ensure that it can service both domestic and international demand efficiently.
Transnet, South Africa’s state-owned logistics and transport operator, has focused on incremental improvements, such as acquiring new cranes and stabilising operations at major terminals. These efforts aim to enhance operational efficiency and gradually improve port capacity. While such measures are positive, more ambitious infrastructure investments – expanding berths, modernising terminals and upgrading hinterland connections – are necessary to fully capture the benefits of strategic maritime positioning. For example, investing in ports such as Richards Bay could alleviate pressure on Durban and Cape Town, providing additional capacity and enabling the country to handle increased traffic along the Cape route.
The Cape route itself has grown in importance due to geopolitical factors. Disruptions in the Red Sea, such as political instability or conflict, can divert shipping traffic around the Cape of Good Hope, increasing the volume of vessels requiring South African port services. In this context, investment in port infrastructure is not just a matter of economic efficiency – it is a national strategic priority. Ensuring that South Africa can reliably service these vessels enhances its reputation as a resilient and dependable trade hub.
Infrastructure challenges extend beyond ports. Rail connectivity, road maintenance and logistics networks must be aligned to ensure that cargo moves seamlessly from port to market. Integration of rail and road transport reduces congestion, lowers costs and minimises environmental impact. For high-value exports such as minerals, agricultural products and manufactured goods, efficient logistics are essential for competitiveness.
Beyond physical infrastructure, policy and governance play a critical role. Predictable regulatory frameworks, clear customs procedures and streamlined port operations are essential for attracting investment and ensuring operational efficiency. South Africa’s ability to integrate domestic policy with strategic infrastructure development will determine whether it can capitalise on the growing importance of global shipping routes.
Furthermore, the rise of digital logistics platforms and smart port technologies provides an opportunity for South Africa to leapfrog traditional constraints. Investments in automation, digital tracking and predictive maintenance can enhance efficiency and reduce delays, creating a competitive advantage. Partnering with private sector operators and leveraging global expertise in logistics innovation can accelerate this transformation.
In conclusion, South Africa’s strategic position along global trade routes presents a significant opportunity. The Cape route, coupled with major ports in Durban and Cape Town, offers the potential to become a central hub for international shipping. However, realising this potential requires not only investment in infrastructure and equipment but also alignment with broader policy, governance and technological initiatives. By addressing these challenges, South Africa can strengthen its role in global trade, enhance economic resilience and capitalise on its unique geographic and strategic advantages.