President Cyril Ramaphosa says the inaugural National Transport Conference should mark a turning point for South Africa’s transport sector, calling for stronger collaboration between government, business, and labour to drive reforms and improve the country’s logistics system.
Addressing delegates at the conference held at Gallagher Convention Centre on Monday, President Ramaphosa highlighted that building an effective transport system requires partnerships across all sectors.
“To build the partnership that this vision requires, we should consider establishing a permanent Transport Council,” the President said.
He explained that the proposed council would bring together government, the private sector, and passenger and logistics service providers across land, air, and sea transport to strengthen cooperation and support reforms in the sector.
President Ramaphosa stressed that an efficient transport and logistics system is essential for economic growth and improving the lives of South Africans.
“Transport is vital to our economy and our people. When our transport arteries are blocked or inefficient, growth stalls, costs rise and opportunity diminishes. When they flow freely, the country thrives,” he said.
Highlighting the urgency of reform, the President noted that logistics inefficiencies are estimated to cost the country’s economy close to R1 billion a day, affecting the movement of goods and people.
He said government has placed logistics reform at the centre of its economic recovery strategy through the Medium-Term Development Plan. Key interventions include the implementation of the National Rail Policy of 2022 and the National Freight Logistics Roadmap of 2023, aimed at restoring rail as the backbone of South Africa’s freight logistics system.
Through the establishment of the Transnet Rail Infrastructure Manager, government has begun opening the rail network to private operators. Train slots covering 24 million tonnes of freight a year have already been conditionally allocated to 11 train operating companies, with the first private operator expected to begin operations in April 2027.
President Ramaphosa said government has set an ambitious target of moving 250 million tonnes of freight by rail by 2029, compared with 160 million tonnes transported in the past financial year.
Improvements are already emerging through the work of the National Logistics Crisis Committee, which has been coordinating efforts to address challenges in the freight system and improve operations on key corridors.
A modern and efficient transport system, the President emphasized, will lower the cost of doing business, attract investment, create jobs, and strengthen regional integration.
“It will strengthen regional integration and make our economy more competitive,” he said.
He added that the conference presents an opportunity for stakeholders to place transport at the centre of the country’s growth path and help shape a more inclusive and resilient transport system.