President Cyril Ramaphosa has proposed the establishment of a permanent national transport council.
He said this council would accelerate the vision outlined in the medium term development plan, which places logistics at the heart of government’s economic recovery strategy.
In his address to the nation’s inaugural transport conference, the president stated that 69% of all freight moves by road, a statistic which he calls a critical imbalance in the freight network.
This places immense strain on our road network and contributes to poor road safety. Inefficiencies in logistics are estimated to cost our economy close to R1 billion a day
— President Cyril Ramaphosa
“This places immense strain on our road network and contributes to poor road safety. Inefficiencies in logistics are estimated to cost our economy close to R1 billion a day. That is a cost we should not and need not bear.”
The president said the establishment of a transport council would be modelled on their experience with the existing energy council.
“Just as collaboration transformed our energy response, cross-sector collaboration of this kind will enable further stabilisation and inclusive growth in transport. This would bring together government, the private sector, and all passenger and logistics service providers across land, air and sea.”
Ramaphosa insisted that this inaugural national transport conference must mark a turning point in South African transport.
“A modern, efficient and inclusive transport system will lower the cost of doing business, attract investment, create jobs and improve household incomes. It will strengthen regional integration and make our economy more competitive.”
Ramaphosa told delegates that the cornerstone of the reform programme is the national rail policy of 2022, complemented by the national freight logistics roadmap of 2023. This plan would require continental partner collaboration, to bring African cities closer and making travel between them cheaper and easier.
In addition, he said the aviation sector is crucial to efforts to drive tourism and enable growth and job creation.
“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.”
The president explained that an effective transport and logistics system is not merely about moving goods and people, but also about unlocking opportunity, restoring competitiveness, reducing inequality and enabling inclusive growth.
With the transport sector being integral to government’s efforts to make economic growth work for everyone, Ramaphosa said it is essential for getting goods from factories and minerals from mines to markets here and abroad.
“By the same measure, it is vital for the development of our rural areas, enabling farmers to get their produce to market and communities to access services.”
In a country where the majority of the population was deliberately removed and settled far away from economic opportunities, the president said it was through an effective, affordable and safe transport system that the administration could narrow those distances.
“To take people to opportunity, and to take opportunity to people. This conference is taking place amid significant changes,” he said.
Ramaphosa reflected on the shifting geopolitical environment, saying that old trade routes are being redrawn and supply chains reconfigured.
“Other countries on our continent are investing aggressively in their own rail and port infrastructure, creating competition and opportunity. It creates competition for our rail and port operations, but it also opens up great opportunities for trade, investment and co-operation throughout our region and across the continent.”
He also touched on climate change as the defining challenge of this time, noting how it is reshaping infrastructure and operations.
“In recent years, we have seen the damage that extreme weather events — such as floods — cause to rail, road and port infrastructure. We have seen how it can disrupt the flow of goods and commuter travel. We need infrastructure that is resilient and sustainable. Our operational capabilities need to be agile and adaptable.”
Altogether, the president said these policies seek to re-establish rail as the backbone of our logistics network.
“They seek to bring in new investment from private operators while keeping strategic infrastructure — our rail lines and ports — in public ownership, as assets that belong to all the people of South Africa.”
On rail, the president said it was through the establishment of the Transnet rail infrastructure manager that open access to the rail network has become a reality.
“To date, train slots covering 24-million tonnes a year have been conditionally awarded to 11 train operating companies. We expect the first private operator to commence operations in April 2027.”
An effective passenger rail system connects communities and provides dignity to working-class South Africans
— President Cyril Ramaphosa
According to the president, his administration has set an ambitious target of moving 250-million tonnes of freight by rail by 2029.
He has since reported that in the past financial year, 160-million tonnes of freight were moved by rail, an increase of 5.5% on the previous year.
“Transnet’s revenue in 2024-2025 rose to R82bn, which is nearly 8% higher than the year before. To decrease backlogs and increase port volumes, Transnet has embarked on an extensive upgrading and maintenance programme.”
The president said his administration’s interventions are working, with early signs of recovery. He told delegates that passenger rail is essential for inclusive growth.
“An effective passenger rail system connects communities and provides dignity to working-class South Africans. The Passenger Rail Agency of South Africa [Prasa] has revived 37 of 40 priority passenger rail corridors and introduced more than 300 locally-manufactured train sets.”
Ramaphosa said government has set its sights on targeting 116-million passenger journeys this financial year, on the way to 600-million trips by 2029.
“Reliable passenger rail lowers commuting costs and improves access to work, education and healthcare. We have launched a new Request for Information to attract private investment in rapid regional rail, rolling stock and depot modernisation.”
On road transport, the president described it as indispensable, as the trucking industry continues to play a vital role in the country’s logistics supply chains.
“The taxi industry, which carries 80% of South Africans who use public transport, is one of the largest black-owned sectors in the economy. The economics of the industry has an impact on the sustainability of public transport, driver behaviour and road safety.”
Ramaphosa said they are working with taxi associations and financial institutions to de-risk the industry and provide accessible finance to taxi owners and drivers, saying transport must be as inclusive as possible.
“The department of transport issued the Action Plan for Universally Accessible Transport in November 2024, outlining the measures we must take to ensure better transport services for persons with disabilities.
On maritime transport, the president expressed that as a trading nation, more than 90% of the country’s trade by volume moves by sea.
“Our ports must be geared to handle any eventuality at short notice and to respond to a geopolitical environment that is becoming more unpredictable. Coastal shipping will be critical to advancing the African Continental Free Trade Area and promote regional integration.”
The president said the air transport sector would need the same agility, adding that a four-hour flight should not take 18 hours.
“The AU’s Single African Air Transport Market envisions a deregulated and liberalised airspace that allows for improved connectivity between African states.”
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