South Africa logistics sector faces infrastructure and coordination challenges

South Africa is facing significant challenges in its freight and logistics networks, driven by infrastructure that struggles to meet demand and a lack of integrated connectivity between farms, factories, and ports. While warehouse capacity exists, the utility of these facilities is often hindered by road congestion, unreliable rail services, and port delays. To address these gaps, Absa has expanded its financing support for logistics developer Newlyn Group to R5.1 billion, highlighting the role of private capital in developing multimodal infrastructure.

As the National Logistics Crisis Committee (NLCC) begins to wind down, industry experts are calling for the establishment of a permanent logistics council. Currently, the sector lacks a dedicated apex body similar to the energy sector's council, relying instead on temporary structures like Business for South Africa (B4SA). Experts suggest a permanent body would provide a coordinated voice for organized business to engage with the Department of Transport on critical structural reforms, including rail restructuring and private-sector participation. Currently, Transnet’s rail volumes remain significantly below government targets.