SA targets rail and port growth to strengthen exports
Speaking during the Department of Transport Budget Vote in Parliament on Tuesday, 12 May, Minister of Transport Barbara Creecy said the reforms would help improve the movement of minerals, vehicles and agricultural products to international markets while strengthening economic competitiveness.
“This will ensure more South African minerals, vehicles and agricultural produce reach international markets, securing jobs and earning much-needed revenue for our fiscus,” said Creecy.
The Minister also announced that the Transnet Rail Infrastructure Manager (TRIM) would soon reveal the names of the first 11 private Train Operating Companies expected to help expand rail freight capacity and export volumes.
Logistics reform central to growth plans
“An effective and efficient transport, mobility, and logistics system will unlock opportunity, restore competitiveness, reduce inequality and enable inclusive growth,” she said.
Creecy warned that South Africa faced growing competition from neighbouring countries investing heavily in rail and port infrastructure.
“Consequently, logistics and mobility reform must be at the heart of our programme for long-term, sustainable economic growth. Improved rail and port infrastructure is already increasing throughput on key export corridors, ensuring improved network reliability, and achieving gains in job creation and emissions reduction,” she said.
The Department of Transport tabled a R102bn budget for the 2026/27 financial year, focused on developing a more competitive and inclusive transport system serving freight, commuters and export industries.
Operating Companies expected to help expand rail freight capacity and export volumes.
Rail and port infrastructure projects
Creecy said significant progress had already been made in unlocking investment and infrastructure delivery through public-private sector partnerships.
“The Durban Container Terminal Pier 2 Concession has reached financial close and will increase port handling capacity from 2.0 million to 2.8 million Twenty-Foot Equivalent Units (TEUs) a year,” she said.
According to the Minister, additional Private Sector Participation projects expected to move to market this year include the Ngqura Manganese Export Corridor, Richards Bay Dry Bulk Terminal and the container corridor between Gauteng and eThekwini.
“Through the Budget Facility for Infrastructure, R16.8 billion in public investment has already been approved and is in execution across the coal and iron ore lines and port infrastructure. Applications for a further R23.6 billion are being developed,” Creecy said.
Aviation sector continues recovery
The Minister said the aviation sector continued showing strong recovery momentum, contributing towards Airports Company South Africa’s target of handling 42 million passengers and 1.2 million tons of air freight by 2029.
“Acsa recorded 37.498 million passenger arrivals and departures in the year to date, representing a significant increase from 34.508 million recorded in the previous year,” she said.
Creecy added that strategic air cargo infrastructure investment was expected to begin in March 2027, alongside a targeted strategy focused on high-value cargo sectors including pharmaceuticals, e-commerce, aerospace and defence, perishables, diamonds, metals and automotive components.
Taxi industry modernisation and regulation
Creecy said government would formally establish the Transport Economic Regulator during the current financial year to determine port and rail fees independently.
The Department will also conclude the review of the Taxi Recapitalisation Grant programme, which aims to support safer and compliant public transport vehicles.
“Work is being done between the Department, taxi associations and financial institutions to reduce the risks associated with the cost of new vehicles and provide affordable finance to taxi operators,” she said.
The Minister said formalising and modernising the taxi industry remained an important economic priority, noting that the South African National Taxi Council had already piloted a cashless taxi route in Gauteng.
“The taxi industry remains a key part of the national transport landscape and one of the largest black-owned sectors in the country, with annual revenue estimated at between R60 billion and R100 billion, contributing about 1.4% to Gross Domestic Product (GDP),” Creecy said.