Three factors that could drive a turnaround in SA's transport sector

Mail & Guardian

19-05-2025

Signs are that the transport sector is on the path to recovery.
Over the past 12 months, there have been some interesting developments in the country's ailing transport sector. It could not come at a better time. Most of the sector is dominated by state-owned Transnet, which operates and controls the country's transport infrastructure and is estimated to have cost the economy R1 billion a day in 2023 —
However, there are promising signs of change. Here are three reasons to be cautiously optimistic:
Government is prioritising the transport sector
In March 2025, Minister of Finance Enoch Godongwana announced in his
The South African National Roads Agency (Sanral) will spend more than R100 billion to maintain roads and reseal over 16 000km of roads. Meanwhile, the Passenger Rail Agency of South Africa has been allocated R19.2 billion for upgrades, particularly for signalling, set to improve the lives of commuters, especially in Mamelodi, KwaMashu, Motherwell and Khayelitsha.
The government has also announced it will seek private sector participation to help address issues on the ore, chrome, coal and manganese lines, as well as improving terminals at the port of Richards Bay. Investment from the private sector is vital, as most port maintenance and operational difficulties require expensive equipment and infrastructure attention.
Early in 2025, the Durban Container Terminals
Skills development is set to give the sector a significant boost
One of the biggest challenges facing the transport sector is the lack of specialised skills in various logistical, management and IT areas.
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It is no coincidence that the theme at the annual Southern African Transport Conference, of which the minister of transport is a patron, was 'Upskilling and reskilling the transport industry for current and future challenges'.
A shining beacon for the sector has been the Transport Education Training Authority, which for a number of years, and across all transport sub-sectors (including aerospace maritime, freight handling, road passenger, taxi, road and rail freight), has been highly active and innovative in deploying bursaries and learning opportunities to address the skills gap, and in so doing support economic development, transformation and job creation in the sector.
The authority has recently entered into a three-year partnership with the University of Cape Town Graduate School of Business to design and deliver an International Leadership Development Programme for senior managers in the transport sector. The year-long course will equip rising leaders in the sector with vital skills to think innovatively, leverage technology and apply global best practice in the South African transport context.
The course extends the skill sets of professionals working in various areas, which will create a network of knowledge-sharing and a platform for greater collaboration in the future.
An interesting aspect of this programme is the inclusion of an international component, with the first cohort attending study immersions in Shenzhen, China, and Mexico City, Mexico, which have been designed to expose participants to developments in transportation, electrification and smart systems as well as offer insights into different models of managing public transport and serving a diverse population.
Private sector is willing to step up
The private sector is willing to assist in revitalising the transport sector. When Transport Minister Barbara Creecy
While private sector participation in the transport industry is complex, there is not only investment capacity, but also the necessary skills to assist here. The
Many local logistics companies have also found innovative ways to address the unique challenges posed to the transport landscape.
Another example can be seen in the creation of the Multimodal Inland Port Association, which was launched in 2024 by role players in the logistics sector. It brings together various organisations and entities to improve the process of moving cargo from road to rail.
Speaking at its launch, Dr Juanita Maree, chief executive of the South African Association of Freight Forwarders, offered this valuable insight: 'Our logistics network is at a turning point, with more alignment across the country than ever before.'
She seems to speak for the transport sector as a whole when she
The road ahead
We need all of these initiatives to work, not only to boost our economy but to improve the lives of ordinary South Africans. According to the
In addition, during 2024, a shocking
With a renewed focus on improving infrastructure, attracting investment and upskilling professionals in the industry, all of South Africa stands to gain from a strengthened and revitalised transport industry.
Rayner Canning is the director of Business Development at the UCT Graduate School of Business.