South Africa’s freight challenges are not confined to one port, railway line or logistics facility. They stem from a network that must move goods between farms, factories, warehouses, ports and international markets, often through infrastructure that has struggled to keep pace with demand.

That is why private investment in logistics infrastructure deserves attention beyond the value of any individual transaction.

Absa’s reported expansion of its financing support for logistics infrastructure developer Newlyn Group to R5.1 billion raises a broader question: can private capital help close the gaps between the different parts of South Africa’s freight network?

The answer will depend less on the amount invested than on where the money goes, how projects connect to existing infrastructure, and whether the resulting facilities improve the movement of cargo.

The Problem is Not Simply a Lack of Warehouses

South Africa has logistics facilities across its major industrial and commercial centres. However, warehouse capacity alone does not resolve the challenges facing the freight system.

A warehouse may provide valuable storage space, but its usefulness depends on what happens outside its gates. If trucks face congestion, rail services are unreliable, or port operations are delayed, the warehouse becomes another holding point in an already disrupted chain.

The more important investment is in infrastructure that connects different activities.

This includes logistics parks near industrial centres, facilities linked to rail terminals, storage close to ports, and sites that allow cargo to move between road and rail without unnecessary handling or additional journeys.

The value lies in the connection. A facility that is properly integrated into the wider network can help businesses plan movements more efficiently and reduce the number of disconnected steps between origin and destination.

Why Multimodal Infrastructure Matters

Road freight remains essential because it offers flexibility and can reach locations that are not served directly by rail. It is particularly important for first-mile and last-mile movements.

Rail, however, can play a different role by moving larger volumes over longer distances. When the two modes are connected effectively, businesses can use each where it makes the most operational and economic sense.

This is the thinking behind multimodal logistics infrastructure.

Cargo could move by truck to a rail-linked facility, travel longer distances by rail, and then return to road freight for final delivery. Warehousing and storage positioned around these connections can support consolidation, distribution and export activity.

This model does not eliminate the need for trucks. It can, however, reduce the pressure on road freight by giving operators more options for moving cargo through the network.

For South Africa, that matters because freight costs are influenced not only by fuel and vehicle expenses, but also by delays, empty running, congestion, repeated handling and unreliable schedules.

Durban Shows Why the Connections Matter

The Durban–Gauteng corridor illustrates the challenge.

Cargo moving through the Port of Durban must travel between the coast and the country’s major industrial and distribution centres. That movement depends on a combination of port operations, rail infrastructure, road freight, warehouses, terminals and inland distribution facilities.

If one part of the corridor performs poorly, pressure is often transferred elsewhere. Delays at a port can affect truck scheduling. Rail constraints can push more cargo onto roads. Congestion can increase turnaround times and raise operating costs for transporters.

Investment in facilities near the port or along important freight routes could improve the way cargo is staged, stored and transferred. These facilities, however, will only deliver their full value if they are supported by reliable road access, functioning rail connections and efficient port operations.

This is the important distinction between building logistics infrastructure and improving logistics performance.

Private Capital Cannot Fix the Entire Network

Private investment can provide funding for new facilities, equipment, technology and development capacity. It can also introduce commercial pressure to improve service delivery and make better use of assets.

However, private logistics developments remain dependent on the wider transport system.

A privately financed rail terminal cannot operate effectively if the rail network lacks capacity. A modern warehouse cannot compensate for severe port delays. A logistics park may still struggle if road access is congested or surrounding infrastructure is inadequate.

Private investment should therefore not be viewed as a replacement for public infrastructure reform. It is one part of a wider system that includes Transnet, municipalities, road authorities, port operators, rail infrastructure managers, freight customers and logistics companies.

The strongest projects will be those planned with these dependencies in mind.

The Timing is Significant

South Africa is pursuing changes to its freight logistics system, including private-sector participation in port operations and the opening of the rail network to third-party operators.

These reforms could create opportunities for infrastructure developers and financial institutions. As more operators enter the market, supporting facilities such as terminals, storage, maintenance sites and cargo-handling infrastructure will become increasingly important.

But the relationship works both ways. New infrastructure can support reform by making it easier for different operators to access the network. At the same time, the success of those facilities will depend on whether the reforms improve the underlying network.

Coordination will therefore matter as much as the availability of finance.

The Real Measure Will Be Better Cargo Movement

The significance of a large logistics financing facility should ultimately be measured by what it changes on the ground.

Does it reduce unnecessary truck movements? Does it make rail a more practical option for freight customers? Does it improve access to ports, reduce handling delays or help exporters move goods more predictably?

These are the outcomes that matter to manufacturers, retailers, exporters, transport operators and consumers.

Private capital has an important role to play in South Africa’s freight recovery. But investment figures alone do not improve a supply chain. The real opportunity lies in using that capital to build the connections the country’s logistics network has been missing.

For South Africa, the bigger test is whether investments like this can help move the country from isolated logistics projects towards a more connected, reliable and competitive freight system.

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)

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.

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.

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.

Who Should Attend?

• Transport and logistics SMEs
• Fleet owners and transport operators
• Logistics and supply-chain professionals
• Industry stakeholders
• Investors and financiers
• OEMs and asset-financing providers
• Service providers
• Policymakers and government stakeholders

Event Details

Event: 4th Annual Access Road Freight SME Summit 2026

Theme: Unlocking Working Capital: Practical Strategies. Stronger Cash Flow. Sustainable Growth for SMEs.

Date: 21–22 October 2026

Venue: Indaba Hotel, Fourways, Johannesburg

Time: 07:30–16:00 daily

Delegate Fee: R2,500 excluding VAT

Website: www.smeroadfreightsummit.co.za 

Email: [email protected]