Freight Forwarding

Five Strategies for enhancing the efficiency of freight forwarding in South Africa

Published

3 years ago

April 27, 2023

Man and women standing infrount of shipping containers

Freight forwarding is a vital part of the supply chain in South Africa. As it involves managing the transportation and logistics of goods from point A to point B. However, just like any other industry, freight forwarding faces obstacles that can impact its efficiency. In this article, we’ll discuss five strategies that can help freight forwarders in South Africa to be more efficient and effective.

1. Technology plays a large part in enhancing efficiency

In today’s world companies can take advantage of a wide variety of useful technology, such as cloud-based software, GPS tracking systems, and digital platforms to manage their operations with a higher degree of efficiency. These technologies come with several advantages, such as automating routine tasks, providing real-time visibility of shipments, and improving the chain of communication between different parties within sectors of the supply chain.

2. Adopting lean management principles

By eliminating wasteful expenditure, whether it be on products, time, or storage your freight forwarding service can optimise its operations. For example, a freight forwarding service can reduce waiting time by improving communication with its partners and its customers.

Having inventory is important however, excess inventory can be wasteful and a cost to your business if your operation cannot move that inventory quickly and efficiently it simply becomes a cost to your inventory storage. This can be addressed by optimising shipping schedules, as this opens fresh storage space by ensuring goods are delivered and items keep moving.

3. Invest in valuable strategic partnerships

Strategic partnerships with other logistics service providers can be highly beneficial to freight forwarders. Because by partnering with a reliable and trusted trucking service and customs broker, freight forwarding partners can reduce the cost of transportation, streamline the customs clearance process, and speed up those all-important delivery times to your customers.

4. Investing in staff training and skills development

Training and improving the quality of your staff can have a more significant effect than you would expect. By investing in your staff, you give them the ability to handle different types of shipments and overcome more complex logistical challenges on their own. This gives freight forwarding companies and your partners trust that your staff is competent and efficient in their duties. Not only can this improve the overall efficiency of your operation as your staff can make decisions more decisively and quickly it also displays to your business partners that you are a company, they can have confidence doing business with going forward.

5. Prioritise your customers

Lastly, prioritising customer service is critical. Freight forwarding companies should make sure that their staff are responsive, friendly, and helpful. They can also invest in customer service technologies, such as chatbots and mobile apps, to enhance the customer experience. By prioritizing customer service, freight forwarding companies can build strong relationships with their customers, leading to repeat business and referrals.

Conclusion

Enhancing the efficiency of freight forwarding in South Africa requires a multifaceted approach that includes embracing technology, adopting lean management principles, establishing strategic partnerships, investing in staff training and development, and prioritizing customer service. By implementing these strategies, freight forwarding companies can improve their operations, reduce costs, and enhance the overall customer experience.

Freight Forwarding

Transnet Reports Progress as Rail Volumes Rise and Freight Reforms Move Forward

Published

9 hours ago

September 14, 2026

SCN Africa

Close up of a railway line through the country side.

Transnet has reported a stronger financial and operational performance for the year ended 31 March 2026, with increased rail volumes, higher revenue and renewed progress on South Africa’s freight logistics reform programme.

In its annual results media statement, released on 10 September, the state-owned freight and logistics company reported revenue of R88.6 billion, a 7.1% increase on the previous year. Transnet also recorded a R4.6 billion profit, compared with a loss of R1.9 billion in the previous financial year.

The results suggest that some of the interventions introduced to improve the reliability of South Africa’s freight network are beginning to produce measurable gains. However, Transnet also acknowledged that significant operational and financial challenges remain.

Rail Volumes Show Signs of Recovery

Rail volumes increased by 4.9% to 167.9 million tonnes during the reporting period. Transnet attributed the improvement to focused interventions aimed at strengthening network reliability, improving maintenance execution and increasing asset availability. Pipeline volumes also increased during the year.

For customers relying on rail to move bulk commodities, minerals, manufactured goods and other freight, improved reliability can have an impact well beyond Transnet’s own results. More dependable rail services can support better production planning, reduce the need for alternative transport arrangements and improve the movement of goods between industrial areas, ports and export markets.

The company said that customers and industry stakeholders had begun to recognise improvements in rail performance and service delivery. It also noted positive feedback from the citrus sector regarding port operations and their contribution to improved export performance.

Despite this progress, Transnet’s operating environment remained difficult. The company identified derailments, rail network and rolling stock constraints, security incidents, equipment and power disruptions, adverse weather, resource shortages, community unrest and customer-related demand challenges among the issues affecting performance. The rail and port businesses were also impacted by R658 million in take-or-pay penalty adjustments.

Reinvent for Growth Remains Central to Recovery

Transnet’s recovery programme continues to be guided by its Reinvent for Growth strategy. The company said the strategy had supported targeted interventions focused on maintenance, asset reliability, operational discipline, technical capability, procurement and supply-chain efficiency.

These measures contributed to higher rail volumes, stronger cash generation and improved customer confidence, according to the statement. The broader objective is to create a more reliable and competitive freight system capable of supporting South Africa’s economic growth.

The challenge now is to ensure that these improvements are sustained. Freight customers require more than occasional operational gains. They need predictable services, consistent turnaround times and the confidence to plan production, inventory and exports around the available network.

Private Investment Changes the Port Landscape

One of the most significant developments during the year was the implementation of Transnet’s Private Sector Participation strategy through the Durban Gateway Terminal transaction.

Transnet disposed of a 49.999% interest in Durban Gateway Terminal to International Container Terminal Services Inc. (ICTSI) for R10.5 billion, with the transaction taking effect on 1 January 2026. The deal generated a reported profit on disposal of R12.5 billion, including a related fair-value adjustment.

Transnet retains a 50.001% shareholding in the terminal, while management control has transferred to ICTSI. The company described the transaction as an important step towards attracting private investment, improving operational performance and supporting the modernisation of South Africa’s port infrastructure.

The transaction also reflects a wider shift in the way the country is approaching freight logistics reform. Public infrastructure remains central to the system, but private-sector participation is increasingly being positioned as a way to bring in capital, technical expertise and operational capacity.

Infrastructure Investment Remains a Priority

Transnet invested R23.3 billion during the year in infrastructure, equipment renewal and operational improvements. The programme focused on the rail network, port performance, asset reliability and operational efficiency.

A further R14.8 billion in grant funding approved by National Treasury through the Budget Facility for Infrastructure is expected to support strategic rail and port projects. Transnet said the funding should assist infrastructure development, improve network performance and reduce future funding requirements.

For the freight industry, the value of this investment will ultimately be measured through practical outcomes: fewer disruptions, improved equipment availability, stronger port productivity and more consistent cargo flows.

Rail Reform Moves Towards Implementation

Transnet also reported progress on the structural reforms affecting South Africa’s freight rail system.

The accounting separation of Transnet Freight Rail into the Transnet Freight Rail Operating Company and the Transnet Rail Infrastructure Manager has been completed. The infrastructure manager is expected to play an increasingly important role in network quality, infrastructure management and reliability.

The company has also concluded rail access agreements with 11 train operating companies. The first private operators are expected to begin services during the 2026/27 financial year.

The introduction of third-party operators is intended to increase network utilisation, expand customer access and support additional freight volumes. Its success, however, will depend on the condition and capacity of the rail network, the effectiveness of access arrangements and the ability to coordinate different operators across shared infrastructure.

The Recovery is Underway, But the Pressure Remains

Transnet’s latest results point to progress, particularly in rail volumes, revenue generation and the implementation of freight reforms. Yet the company’s own statement makes clear that the recovery is taking place against a backdrop of equipment constraints, infrastructure challenges, security concerns and uneven demand.

The focus for the year ahead will be on improving operational reliability, increasing freight volumes, strengthening customer confidence and creating a safer and more efficient operating environment. Transnet also expects further progress in private rail participation and strategic infrastructure projects.

For South Africa’s logistics industry, the key question is whether these improvements can develop into a consistent change in the way goods move through the country. A stronger Transnet could reduce pressure on road freight, support exporters and improve the competitiveness of local industries. But that will depend on turning financial recovery and reform commitments into reliable day-to-day freight services.

Read the full Transnet annual results media statement (10 September)

Freight Forwarding

A Terminal in Healing: SAFLA and the RFA Acknowledge the Movement Towards DGT Efficiency

Published

3 days ago

September 11, 2026

SCN Africa

The South African Freight and Logistics Association (SAFLA) and the Road Freight Association (RFA) were present during the recent interaction between Durban Gateway Terminal (DGT) and relevant stakeholders and organisations that have operations or members processing cargo through the terminal.

Representatives of DGT and International Container Terminal Services Inc (ICTSI) were candid and open regarding challenges experienced – as well as what had been achieved in the period that Transnet had signed the agreement with ICSTI.

Whilst there are challenges, the terminal was functioning well – given the challenges experienced, and both DGT and ICTSI listened to comments from all present and noted that two processes were in place to address the operations at DGT.

One was short term: this included the waiving of all terminal storage charges whilst the current set of challenges were experienced, and secondly, there was an accelerated programme to keep the various pieces of machinery operating at the best levels of safety and functionality, as was possible. Gensets had been brought in to deal with power disruptions.

In addition, DGT acknowledged the problems with the slot booking system and already had developed a solution to vastly improve the process – this was to be shared with all shareholders in due course for comment and implementation.

DGT also brought Transnet into the meeting to address certain aspects that had placed pressure on operational efficiencies.

Long-term plans: the Terminal requires significant refurbishment and upgrading / modernising to compete with the options of other ports on the Southern African continent. Much of the equipment needed has been ordered – but there are lengthy lead times in the delivery of the equipment.

“There are immediate short-term options – such as reducing the pressure on the terminal whilst upgrades and interventions are applied. Perhaps Transnet can lower container movement tariffs (from other ports) for a period, whilst DGT is brought to the level of efficiency required. As we have noted – transporters are carrying the costs of inefficiencies,” said Gavin Kelly, Chief Executive Officer of the RFA. “Fleets are standing without bookings while fixed costs run, drivers are queuing on Bayhead Road, and every standing hour ends up in the price of goods. Slot releases must match real capacity, and truck staging must be fast-tracked now. Without trucks, South Africa stops.”

“SAFLA is delighted at the waiving of storage charges whilst the current set of challenges are being experienced,” said Dave Logan of SAFLA. “This will meaningfully ease the burden on freight forwarders and their clients, and we welcome this gesture of good faith from DGT and ICTSI.”

SAFLA and the RFA stand ready to contribute member evidence and practitioner expertise to a joint recovery task team alongside DGT, Transnet, government and other industry bodies.

Gavin Kelly, CEO of the Road Freight Association

Dave Logan – Executive Officer of SAFLA

Freight Forwarding

Road Freight SME Summit 2026 to Unlock Working Capital and Growth Opportunities for South Africa’s Transport and Logistics SMEs

Published

4 days ago

September 10, 2026

SCN Africa

Road Freight SME Summit 2026 event poster.

South Africa’s transport and logistics SMEs will converge at the 4th Annual Access Road Freight SME Summit 2026, taking place on 21–22 October 2026 at the Indaba Hotel, Fourways, Johannesburg.

Under the theme “Unlocking Working Capital: Practical Strategies. Stronger Cash Flow. Sustainable Growth for SMEs,” the two-day Summit will bring together SME operators, fleet owners, transport professionals, financial institutions, industry leaders, policymakers and service providers to address one of the most pressing challenges facing the sector: access to and effective management of working capital.

Florence Msundwa: Founder and Convener – Road Freight SME Summit

According to Florence Musundwa, host of the Road Freight SME Summit, the event was built to move beyond the traditional funding conversation. “Access to capital remains a real constraint for transport SMEs, but this Summit is about helping operators optimise cash flow, unlock the value of assets they already have, and build commercially sustainable businesses,” Musundwa says.

Unlocking Working Capital

For many transport SMEs, access to capital remains a significant constraint. However, the 2026 Summit will go beyond the traditional conversation around funding to examine how SMEs can optimise cash flow, unlock the value of their existing assets and build commercially sustainable businesses.

Key discussions will focus on:

Capital Access in a High-Risk Industry: Unlocking working capital and scaling beyond survival.
Beyond Cashflow: Using purchase-order finance to scale loads, fleets and revenue capacity.
The Real Cost of Your Fleet: Route profitability, margin audits and data-driven fleet decisions.
Future-Proofing SME Fleets: OEM strategy, asset financing and commercial vehicle innovation.

“The programme will also unpack practical strategies and digital solutions to help transport businesses strengthen cash flow, improve operational efficiency and make better commercial decisions,” adds Musundwa.

Senior Industry Leaders at the Table

The 2026 Summit brings together an impressive line-up of industry leaders, executives and decision-makers, including:

Lwazi Mboyi — Chief Executive Officer, Cross-Border Road Transport Agency
Maphefo Anno-Frempong — Chief Executive Officer, Transport Education Training Authority (TETA)
Unathi Kildase — Vice President Operations, Game Africa Massmart

Siyabonga Gule — Founder, Beapo
Dewald Brand— Contract Success Executive, RNR App
Musa Ndlovu— National Secretary, National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI)
Stevie Ferreira— Founder, TruckFuelNet (TFN)
Jonathan McDonald — Vice President, South African Freight and Logistics Association (SAFLA)
Oliver Naidoo — Managing Director, JC Auditors
Mesela Nhlapo — Chief Executive Officer, African Rail Industry Association (ARIA)
Jedd Harris — Chief Strategy Officer, Sourcefin
Lee-Anne Vermeulen — National Manager: Commercial, Cross-Border Road Transport Agency
Thabo Moodie — Chief Operations Officer, Oricred
Dr Paulina Mamogobo — Chief Economist, naamsa| The Automotive Business Council
Khaya Mahlangu — Managing Director, Cogash Rentals

A featured session will include Stevie Ferreira, Founder of TFN, presenting “From Building TFN to Building What’s Next”, with a focus on optimising working capital and strengthening SME cash flow.

Road Freight SME Summit 2026 speaker line up.

A Platform Built Around Access

Musundwa says the Summit was founded on a simple objective: building access to the relationships, knowledge, markets, finance and opportunities SMEs need to grow. “Access to finance alone isn’t enough. Businesses also need access to customers, procurement opportunities, credible financial solutions, industry intelligence, technology and the decision-makers shaping the sector’s future,” she says.

Strong Industry Support

The 2026 Summit is supported by leading organisations across the sector. Sponsors and partners include FNB, WesBank, TETA, Santam, Absa, Sasol, the Cross-Border Road Transport Agency (C-BRTA), Isuzu and Sourcefin.