State of the Nation 2024
Transport sector
Reforms in the transport sector aim to improve the efficiency of South Africa’s logistics infrastructure, helping to grow exports.
Corporatising the Transnet National Ports Authority
Will create greater efficiency and lower costs, which will increase the competitiveness of South African exports and reduce the cost of imported goods. At present, both the TNPA and Transnet Port Terminals (TPT) are divisions of the Transnet group. Because one company acts as both landlord and operator of many port terminals, it is difficult to hold the port operator accountable for port performance. By separating the port owner and the port operator into independent subsidiaries, incentives will be created for greater efficiency and private sector competition.
Implementing a third-party access policy for freight rail
Will allow private rail operators to have access to the freight rail network, while paying an access fee to Transnet as the owner of the infrastructure. This will enable massive new investment in freight rail by private companies, and will increase the volume of goods that can be transported via rail instead of roads. This will in turn reduce congestion on major highways and improve road conditions.
