By Eamonn Ryan
Transport minister Barbara Creecy has tabled a R102-billion budget against the backdrop of a key structural shift in South Africa’s freight system – one that carries significant implications for the country’s cold chain and temperature-sensitive export economy.
At the centre of the announcement is the imminent entry of private rail operators under the Transnet Rail Infrastructure Manager (TRIM) framework, with the first 11 train operating companies expected to be named. Collectively, these operators are targeting the movement of up to 24 million tonnes of freight per year from April 2027, a reform intended to improve capacity, reliability and corridor performance across the national network.
While the broader reform narrative spans multiple freight categories, the most immediate and material impact will be felt in the cold chain sector, where delays, congestion and inconsistent rail performance have historically undermined the integrity of temperature-sensitive cargo.
These include high-value agricultural exports such as citrus, table grapes, berries, avocados, stone fruit, as well as refrigerated protein products and pharmaceuticals – all of which depend on uninterrupted temperature control from inland production zones through to port export terminals.
Creecy said the reforms, anchored in the National Rail Policy (2022) and the Freight Logistics Roadmap (2023), are designed to open access to the rail network while allowing Transnet SOC Ltd to focus on infrastructure maintenance and system recovery. For cold chain operators, this separation of roles is particularly significant, as it directly addresses long-standing bottlenecks that have contributed to dwell-time variability and cold integrity risks.
The establishment of TRIM in late 2024 is intended to enable third-party access to rail corridors, allowing private operators to introduce more frequent, predictable services. In cold chain terms, this could translate into improved scheduling certainty for refrigerated container flows, better utilisation of reefer-equipped wagons and containers, and reduced exposure of perishables to temperature excursions during rail delays.
A further development highlighted in the budget is the formal establishment of the Transport Economic Regulator, which will independently set rail and port tariffs. For cold chain exporters, tariff stability and transparency are critical inputs into routing decisions, particularly where high-value perishables are highly sensitive to both time and cost volatility.
Port infrastructure upgrades also form part of the reform agenda, with the Durban Container Terminal Pier 2 concession reaching financial close. Capacity is expected to increase from 2.0 million to 2.8 million TEUs per year. While this figure spans all containerised cargo, the expansion is particularly relevant for refrigerated container (reefer) throughput, which remains constrained during peak horticultural export seasons.
Improved performance at key export gateways such as Durban and Ngqura is expected to support smoother cold chain continuity between rail arrival and vessel loading, reducing the risk of spoilage linked to congestion-driven delays.
Deputy transport minister Mkhuleko Hlengwa said progress is also being made toward corporatising the National Ports Authority, a move intended to improve operational autonomy and accelerate infrastructure investment. For cold chain logistics, this could enable more targeted investment in reefer plug capacity, temperature-controlled staging areas and digital tracking systems within port environments.
The budget further allocates funding toward rail and port upgrades that, while not exclusively cold chain-focused, are expected to improve reliability across export corridors that serve South Africa’s agricultural heartlands. Enhanced rail performance on these routes is central to shifting more refrigerated cargo away from road transport, where fuel volatility, congestion and inconsistent transit times continue to pose risks to temperature stability.
Overall, the reform programme signals a structural reset of South Africa’s freight logistics system – one that could materially strengthen the country’s cold chain competitiveness. If successfully implemented, improved rail access, expanded port capacity and clearer regulatory oversight may together reduce spoilage risk, enhance export reliability and support growth in high-value perishable markets.