South Africa’s Freight System Shows Progress, But Challenges Remain

South Africa is making strides in revitalizing its logistics infrastructure. However, while some stabilization has occurred, a significant leap forward is still needed. This sentiment emerged during a panel discussion at the SAPICS 2025 conference held in Cape Town in June.

Panel Insights

SAPICS, known as the South African Professional Body for Supply Chain Management, hosted discussions moderated by Dr. Juanita Maree, the CEO of the South African Association of Freight Forwarders. She asked panelists to assess the main pillars of the Freight Logistics Roadmap using a color-coded system: green, amber, or red.

Key Pillars of the Freight Logistics Roadmap

The roadmap consists of four essential pillars: policy and institutional reform, infrastructure investment, operational efficiency, and private sector participation.

Jaap van der Merwe, the key author of the Freight Logistics Roadmap and an advisor for Operation Vulindlela, expressed caution regarding the first pillar. According to him, progress is only at 40%. “This isn’t a moment for celebration; we need to confront reality,” he said. He rated this pillar as amber, stating, “We have established the policies, but the necessary reforms are yet to be implemented.”

Operation Vulindlela is a collaborative initiative between the Presidency and the National Treasury aimed at speeding up structural reforms and boosting economic recovery.

Infrastructure Investment Challenges

When it comes to infrastructure investment, Van der Merwe’s outlook was even more daunting; he deemed this pillar to be in the red zone. “Funds have not been allocated, and even if we start now, we are already years behind,” he noted.

He assessed operational efficiency as amber, pointing out that while the decline in the freight system had been halted, there is still much work to be done. “We’ve improved, but there’s still excess capacity in the system,” he observed.

On the topic of private sector involvement, he rated it as red, emphasizing that it is still very much in its infancy.

Diverse Perspectives from Panelists

Khule Duma, the director of the Presidency’s project management office, held a more optimistic view. He rated the first pillar as green, citing “significant progress.” However, he alone aligned with Van der Merwe by rating the second pillar as red, calling it a substantial issue. He assessed the third as amber due to marked improvements and mentioned that the fourth pillar is close to green, with meaningful advancements expected by 2025.

Duma acknowledged criticisms regarding the pace of change in the freight system, countering that the volume of changes underway is considerable. “From a policy viewpoint, we might be experiencing the most significant transformation in a century,” he said.

Private Sector Insights

Theo Pappas, head of A.P. Moller – Maersk for Southern Africa and the Indian Ocean Islands, shared a mixed evaluation. He rated the first pillar as amber leaning toward green, and second as red. He indicated that while there is stabilization in South Africa’s port system, particularly compared to two years ago, challenges remain.

Pappas highlighted that predictability in operations has improved, enabling better planning. However, he pointed out that the rail system needs urgent attention. “The focus now is on land operations to enhance rail efficiency and expedite cargo handling,” he explained.

Conclusion

Innocentia Motau, CEO of Shosholoza Ports Operations, echoed Pappas’s concerns. She noted a significant degree of stabilization in port operations but stressed that the rail system remains a “major challenge.” While progress is evident, more is needed to fully restore and enhance South Africa’s logistics infrastructure.

What do you think are the most critical next steps for improving the freight logistics system in South Africa?