Every motorist in SA knows the scene all too well: two fully loaded coal trucks crawling side-by-side at 40km/h on the freeway, in effect turning a major national artery into a parking lot. Our roads are gridlocked not only because of the sheer number of trucks but also because of how they are forced to operate in a system where rail has collapsed.
SA’s road infrastructure is under siege. The country’s highways and secondary routes, already burdened by under-maintenance, are carrying freight volumes that were historically moved by rail. The results are visible everywhere: deteriorating road surfaces, an alarming increase in heavy-vehicle accidents and congested traffic flows that compromise both safety and efficiency.
The trend is not merely inconvenient; it is unsustainable. Roads are being damaged at a rate that far outpaces available budgets for repair. The cost of rehabilitation runs into the billions each year, diverting resources from other critical needs. More significantly, the reliance on road freight distorts SA’s logistics system, inflating costs for exporters and reducing the country’s global competitiveness.
Rail collapse drives crisis
At the centre of this problem is the collapse of freight rail reliability. For decades freight rail served as the backbone of bulk transport: moving coal, minerals, agricultural produce and manufactured goods across the country with relative efficiency. As this system faltered logistics chains were forced to adapt.
Increasingly, bulk commodities have shifted to trucks. Today, it is common to see long convoys of 18-wheelers transporting cargo that should be carried by trains. The inefficiency is stark: road transport burns more fuel, creates more congestion and produces higher levels of carbon emissions.
Against this backdrop the September announcement by transport minister Barbara Creecy that 11 private sector operators — including international shipping leader MSC — had been granted access to the national freight rail network, represents a significant turning point.
Of the 25 applications submitted, almost half were approved, covering 41 freight routes. This reform is more than a regulatory adjustment; it is an opportunity to rebalance the country’s logistics system.
Opening the network to private operators introduces new capital, innovation and performance standards into a sector that has long been constrained. The experience of global operators brings fresh perspectives on efficiency and customer service, while domestic companies will have incentives to optimise their operations. This alignment between state ownership of infrastructure and private operation of services has the potential to stabilise and modernise SA’s freight corridors.
Relief for roads, lower costs for business
The immediate benefits would be twofold. First, reducing the number of heavy trucks on roads will slow the pace of deterioration, freeing up public funds and improving road safety. Second, reliable rail services will reduce logistics costs for businesses. For exporters in particular this can translate into shorter lead times and more predictable delivery schedules. In highly competitive global markets, where margins are narrow, these advantages are decisive.
Yet the opportunity is broader than road protection and cost reduction. If implemented effectively, freight rail reform could reposition SA as a continental logistics hub. Our geographic location gives us natural advantages for trade between the Brics bloc and African partners. But without efficient transport and port systems, these advantages are squandered. Aligning rail reform with overdue port modernisation would provide an integrated logistics platform capable of supporting large-scale trade flows.
From a supply-chain management perspective this reform is not optional — it is essential. Supply chains depend on reliability and predictability. When freight is delayed or costs escalate, businesses lose their ability to compete, particularly in respect of perishables. This erodes investor confidence and weakens the economy’s capacity for job creation. Conversely, when supply chains are strengthened, economic growth accelerates. The ripple effects reach every sector, from mining and manufacturing to agriculture and retail.
Follow-through will define success
It is therefore imperative that government follow through on its commitments. Regulatory clarity is key. Private operators must have confidence that they will be granted fair access to rail infrastructure, with transparent pricing and efficient oversight. Infrastructure investment must be prioritised to ensure the network can accommodate increased demand without bottlenecks.
Finally, co-ordination with port authorities and customs agencies is essential to ensure improvements in one part of the chain are not undermined by inefficiencies elsewhere.
SA stands at a crossroad. On the one hand is the current trajectory: ever more trucks grinding across highways, road repair costs spiralling and global competitiveness continuing to erode. On the other is the path of reform: a revitalised freight rail system that restores balance, efficiency and sustainability to national logistics.
The choice is clear. SA’s future as a trading nation depends on efficient supply chains. By opening freight rail to private operators, the government has taken an important first step. The task now is to ensure that the promise of reform is translated into tangible improvements on the ground. If this is achieved, our roads will be safer, our exports more competitive and our economy more resilient.
In supply-chain management, reliability is not a luxury; it is the foundation of growth. Rail reform offers the chance to rebuild that foundation. SA cannot afford to squander it.
• Dr Van Biljon is head lecturer and MCom programme co-ordinator at IMM Graduate School.
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