Barbara Creecy says South Africa is intensifying logistics and mobility reforms aimed at increasing export volumes, strengthening economic growth and improving government revenue collection through upgraded rail and port infrastructure.
Speaking during the Department of Transport’s 2026/27 Budget Vote presentation in Parliament, Creecy announced that South Africa plans to move up to 24 million tons of freight annually from 1 April 2027 through expanded rail operations and increased private sector participation.
The reforms are expected to support the export of minerals, agricultural products and manufactured goods into international markets while helping improve network efficiency and 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,” Creecy said.
A central component of the reforms involves opening rail operations to private Train Operating Companies. The Transnet Rail Infrastructure Manager is expected to soon announce the first 11 private operators selected to participate in the programme.
Government says the logistics overhaul is critical as neighbouring African countries continue investing heavily in competing rail and port infrastructure capable of diverting regional trade flows.
“Logistics and mobility reform must be at the heart of our programme for long-term, sustainable economic growth,” Creecy said.
South Africa’s logistics constraints, including rail bottlenecks, port congestion and infrastructure inefficiencies, have significantly affected export industries in recent years, particularly mining and agriculture.
The government has allocated R102 billion to the transport sector in the 2026/27 financial year to support infrastructure expansion, freight corridor upgrades and operational improvements across rail, ports and aviation.
Among the major developments highlighted was the financial close of the Durban Container Terminal Pier 2 concession project, which will increase handling capacity from 2 million to 2.8 million twenty-foot equivalent units annually.
Additional private sector participation projects expected to move forward this year include the Ngqura Manganese Export Corridor, Richards Bay Dry Bulk Terminal and the freight container corridor connecting Gauteng and eThekwini.
Government has already approved R16.8 billion in public investment for infrastructure projects linked to coal export lines, iron ore corridors and port upgrades, while proposals for an additional R23.6 billion are currently under development.
The reforms are expected to directly benefit South Africa’s agricultural export sector by improving freight reliability, reducing transport delays and expanding access to export markets.
Agricultural producers have increasingly raised concerns over logistics disruptions affecting the movement of fresh produce, grains and processed agricultural products through ports and rail systems.
In the aviation sector, Airports Company South Africa (ACSA) recorded 37.5 million passenger movements over the past year, up from 34.5 million previously, reflecting continued recovery in the travel and air cargo industries.
Government is also preparing strategic investments in air freight infrastructure focused on high-value cargo sectors including pharmaceuticals, perishables, e-commerce, automotive components and precious minerals.
Creecy additionally emphasised the importance of the taxi industry within South Africa’s economy, describing it as one of the country’s largest black-owned sectors with annual revenues estimated between R60 billion and R100 billion.
As part of broader transport reforms, government plans to finalise the review of the Taxi Recapitalisation Grant and continue efforts to modernise and formalise the sector, including the expansion of cashless payment systems piloted in Gauteng.
The establishment of the Transport Economic Regulator this year is also expected to introduce more independent oversight of port and rail tariffs to improve competitiveness and encourage greater private investment participation across the transport sector.