Minister Barbara Creecy outlines South Africa's rail, logistics and transport recovery plan

Zawya

4 days ago

South Africa's Minister of Transport, Barbara Creecy, says fixing the country's transport and logistics infrastructure is one of government's biggest priorities, with both urgent short-term interventions and long-term reforms on the table.
Creecy was speaking during a PSG Think Big webinar on Tuesday, 24 June 2025, where she gave an update on progress made since her appointment a year ago, as well as what lies ahead for rail, roads, ports and aviation in the country.
The conversation was hosted by financial journalist and anchor Alishia Seckam.
The Transport Department oversees 16 state-owned entities, including Transnet, Prasa, the Road Accident Fund, Acsa, ATNS and others.
Targets for recovery
Creecy said logistics bottlenecks have become a major constraint on South Africa's economy, costing the country as much as R1bn a day. A clear set of five-year performance targets has been introduced for the sector, including:
• Increasing freight moved on Transnet's rail network from 149 million tonnes to 250 million tonnes annually.
• Raising port productivity to 30 gross crane moves per hour, which is the international benchmark.
• Restoring Prasa's commuter network to 600 million passenger journeys a year by 2030 (currently sitting at 77 million, with 35 of the 40 key lines now operational).
• Increasing air passenger numbers through Acsa's network to 42 million annually and tripling air freight to 1.2 million tonnes per year.
• Reducing road accidents and fatalities by 50% by 2030.
Creecy also noted that digitisation and modern control systems would be a priority in future network upgrades, as South Africa's signalling and control infrastructure remains far behind global standards.
Slow but steady progress
On rail freight, Creecy said Transnet had increased tonnage from 149 million tonnes to 161 million tonnes in the past year. Major problems remain with the condition of the country's rail network, including ageing infrastructure, signalling problems and a lack of investment.
A request for infrastructure funding has been submitted to National Treasury, alongside longer-term rail reform plans. These include opening key freight corridors to private operators and third parties for the first time.
'We've issued a network statement, and by year-end, we hope to appoint third-party operators on five of the country's priority freight lines," Creecy said.
An interim economic regulator is in place, and private sector interest has been strong, with 163 submissions received through a recent request for information (RFI). The process attracted more than 11,000 site visits, reflecting significant appetite from private operators.
Short-term fixes alongside long-term reform
Creecy said government was balancing urgent operational improvements with longer-term changes.
On ports, new equipment like cranes and straddle carriers has been procured and will be commissioned this year. On rail, an emphasis has been placed on restoring signalling so that newly manufactured Prasa trains can be fully deployed.
"We have 287 of the 600 new Prasa trains in service, but to run them properly, we need the signalling in place," she said.
Transnet has set itself an ambitious target of 180 million tonnes for the 2025 financial year — whether it will reach it remains to be seen, but Creecy said it was important to set ambitious goals to drive progress.
New rail master plan and legislation on the way
Creecy confirmed a National Rail Master Plan would be released for public consultation later this year. It will cover both fixing the existing network and mapping out future upgrades, including a potential move from narrow gauge to standard gauge lines, which would allow for faster, double-stacked container trains.
South Africa's current network, excluding Gautrain, largely dates back to the 1970s, leaving it behind other economies where rail systems are already highly digitised and automated.
A new National Rail Bill is also being prepared. "It will be the first legislation to properly regulate all aspects of rail in South Africa,' she said, adding that enshrining reforms in law was critical to ensure continuity beyond changes in political leadership.
Linking infrastructure to industrial policy
Creecy said reforms would be closely aligned with South Africa's industrial strategy, including localisation.
A key focus will be on using local steel and manufacturing capacity for rail upgrades. "Between Minister Ramokgopa's energy transmission tower programme and our rail revamp, we believe we can create a demand of about 200,000 tonnes of South African-made steel a year," she said.
Prasa is already using 145 tonnes of locally produced steel per new train.
Creecy added that it's a conversation already underway between herself, Minister Ramokgopa and Minister Tau, aimed at linking infrastructure investment to local economic stimulus.
Positioning for regional rail opportunities
Creecy said South Africa's logistics expertise could be exported to the region once the local network stabilises.
"There are already projects underway like the railway from Maputo to Walvis Bay, and from the DRC to Angola via the Lobito corridor. South African companies are involved in those builds. So while some see this as competition, it's also future business for Transnet and local operators," she said.
She noted that revitalising South Africa's own network would be essential to position Transnet to compete and participate commercially in these future regional opportunities.
Creecy closed by saying that while the logistics challenges are significant, steady progress is being made through partnerships between government, business and private investors.
The combination of interim repairs, opening parts of the network to new operators, and laying the groundwork for future reforms would help rebuild South Africa's transport and logistics sector in the years ahead.
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).