Underperformance erodes competitiveness
Adapt or be left behind: Creecy warns transport sector as neighbours target SA’s logistics weaknesses
SOUTH AFRICA: The country’s underperforming transport sector was flagged as a threat that will erode South Africa’s competitiveness as well as threaten trade and jobs at the 2026 Southern African Transport Conference which opened yesterday.
Delivering the opening address, Minister of Transport, Barbara Creecy told delegates that the South Africa’s logistics weaknesses have made the country vulnerable and that its neighbours are ready to exploit the situation.
Speaking under the theme “Developing and Sustaining Transport Systems in an Uncertain World”, Creecy warned that South Africa’s transport failures have moved beyond operational inconvenience and now threaten trade, jobs and national competitiveness.
“In the South African context, years of under-investment in logistics infrastructure and the post-pandemic downturn in rail and port performance have led to increased competition from our neighbours, who threaten to capitalise on our logistics vulnerabilities.”
Creecy said transport disruption damages the entire economy. “These disruptions ripple through passenger journeys, freight movements, and the efficiency of supply chains that support our economy. When transport faces disruption, market efficiencies are compromised, and the sector’s capacity to add value to goods, to jobs, and to social well-being is undermined.”
Creecy’s most direct warning was that South Africa’s logistics underperformance is handing an advantage to regional competitors.
“In the South African context, years of under-investment in logistics infrastructure and the post-pandemic downturn in rail and port performance have led to increased competition from our neighbours, who threaten to capitalise on our logistics vulnerabilities,” she said.
Technology and energy shift the agenda
Creecy said transport reform can no longer be separated from climate resilience, cleaner fuels and digital systems.
“Underpinning our current reform agenda is the notion that we cannot continue with a business-as-usual approach to the challenges that we face. If we do not adapt to the current geopolitical realities with which we are confronted, we will be left behind.”
She pointed to Ngqura’s Liquid Gas Terminal, progress on the Boegoebaai Port, green hydrogen plans and work on sustainable aviation fuels as signs that transport is becoming central to South Africa’s energy transition.
“At a broader level, the Department and its 20 entities will work together to develop a single digitised transport sector platform that will host all online permitting services through a common citizen interface,” she said.
Rail reform takes centre stage
Creecy said rail and port reform are now “at the centre of government’s agenda for the transport sector”. The priority, she said, is to rebuild rail as the foundation of freight movement.
“Our ambitious reforms in the rail space seek to re-establish rail as the backbone of the freight logistics system,” she explained.
According to Creecy, a strategic shift from road to rail is essential in South Africa. “Increased utilisation of rail transport enhances road safety, decreases congestion on our roads, reduces wear and tear on road surfaces, and, critically, is responsible for lower CO2 emissions,” she noted.
The most significant reform is the opening of the national rail network to private train operators. Creecy confirmed that 11 private Train Operating Companies were approved in March to access the network.
“These TOCs will bring their expertise and capital to rail operations, whilst the network will remain state-owned and belong to the people of South Africa,” she said.
Operations are due to commence in April 2027. “These operators will contribute significantly to government’s objective of moving 250 million tonnes of freight on the Transnet rail network by 2030,” she added.
Reform now faces the delivery test
Creecy closed by making it clear that the scale of reform required will demand coordination across government, industry and investors, not simply policy ambition.
“In closing, I reiterate our collective vision: a transport system that is integrated, sustainable, resilient, and inclusive; that strengthens our economy, safeguards our environment, and serves all South Africans with dignity and efficiency.
“The road ahead will demand steadfast leadership, prudent policy, and sustained investment. With your partnership, we can deliver a transport future that is robust against uncertainty and beneficial to every citizen,” she concluded.
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