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.

By Harry Dimo, HR Director, BIL & Lawrence Aldworth, National Compliance and Risk Manager, BIL

Ask most logistics leaders what sustainability means, and the conversation quickly turns to emissions, electric vehicles and carbon reporting. While those issues matter, they’ve also created one of the industry’s biggest blind spots. Sustainability has become an environmental conversation when it should be a business one.

The logistics businesses that will thrive beyond 2030 will not simply be those with the lowest carbon footprint. They will be the organisations that embed sustainability into every aspect of their operations, from developing their people and embracing innovation to strengthening governance, ensuring compliance and building resilience.

For Harry Dimo, HR Director at Bidvest International Logistics, that journey starts with people: “We’re assessing the competencies required now and in the future so we can begin upskilling employees for where the business is going, not just where it is today.”

As automation, digitalisation and artificial intelligence continue to reshape supply chains, organisations must prepare employees to work alongside these technologies rather than be displaced by them. Future-ready businesses are identifying tomorrow’s skills today, investing in continuous learning and equipping people to adapt as customer expectations and business needs evolve. Investing in future capability is every bit as important as investing in greener technology.

“When people hear sustainability, they immediately think environmental. But sustainability is much broader than that. It’s about environmental, social and governance principles working together to create a business that is built to last,” says Lawrence Aldworth, National Compliance and Risk Manager at Bidvest International Logistics.

That broader definition is becoming increasingly important as customers raise their expectations. Organisations are no longer evaluated solely on price, service and operational capability. Increasingly, customers are assessing the environmental, social, and governance (ESG) maturity of companies, making responsible business practices a key competitive differentiator. Businesses that fail to evolve risk being excluded from future opportunities rather than simply falling behind competitors.

Sustainability is therefore not another initiative sitting alongside the business. It is the framework through which the business operates. Environmental responsibility protects natural resources. Good governance builds trust, accountability and resilience, while investment in people ensures organisations can respond to changing technologies, customer expectations and market demands.

Innovation and compliance are equally important. By empowering employees to contribute ideas and embrace technology, organisations create a culture of continuous improvement that strengthens operational performance, enhances customer outcomes and increases employee engagement.

As Harry explains: “Leadership can define the vision for the future, but it is our people who bring that vision to life every day. Preparing them for what comes next is one of the most important investments we can make.”

Compliance should also be viewed through a different lens. Too often perceived as a cost of doing business, effective governance creates measurable value by reducing operational risk, protecting customers’ products and strengthening confidence among organisations that increasingly expect responsible business practices from their logistics partners.

Lawrence adds: “Good compliance management reduces risk, which ultimately reduces cost. It also creates value for customers by protecting their products while they’re in our care.”

The organisations best positioned for the future are those that combine resilience with adaptability. They invest in capable people, encourage innovation, strengthen governance and continuously evolve to meet changing customer needs.

Sustainability is not just about protecting the planet’s future. It is about building organisations that are equipped to protect their people’s future, earn their customers’ trust, and adapt with confidence to whatever comes next. Businesses that embrace this broader definition of sustainability will not only remain relevant but also help shape the future of logistics.

South African cherry growers can now sell into China for the first time, opening a major new market for the country’s growing cherry industry.

Agriculture Minister Willie Aucamp signed the market-access protocol with China’s General Administration of Customs in Beijing on 8 September. China imported about 586,900 tonnes of cherries worth US$3.3 billion in 2025, making it the world’s largest cherry importer.

For South Africa’s supply-chain industry, however, the interesting part starts after the agreement is signed.

Getting cherries from an orchard to a Chinese buyer requires a coordinated journey involving harvesting, packing, temperature-controlled logistics, road freight, export procedures, international shipping and distribution.

For a perishable product, every stage matters.

From Orchard to Packhouse

The export journey starts with producing fruit that meets the requirements of the destination market.

The new market-access protocol establishes the framework for South African cherries to enter China and forms part of the sanitary and phytosanitary arrangements governing agricultural trade between the two countries.

Once harvested, cherries need to move quickly through packing and preparation. The fruit then enters a temperature-controlled supply chain designed to maintain its condition while it travels towards the export gateway.

This makes logistics more than a transport function. Delays at the farm, packhouse, storage facility or during transport can reduce the time available for the rest of the journey.

The Journey to the Export Gateway

Where the cherries are grown will influence how they reach international markets.

South Africa’s cherry industry has expanded significantly in recent years, with planted area increasing from 185 hectares in 2012 to 819 hectares in 2024, according to industry body Hortgro.

As production grows, so does the logistics network needed to support it.

More fruit means more movement between farms and packhouses, greater demand for cold storage and additional transport capacity to connect production areas with export gateways.

The opening of China could therefore create opportunities beyond the growers themselves.

Then Comes the Export Process

Physical movement is only part of getting the cherries into China.

South African exporters also need to meet customs and origin requirements.

South Africa’s temporary zero-tariff arrangement with China came into effect on 1 May 2026. Qualifying exports can receive zero-tariff treatment if they meet the applicable rules of origin, although some tariff lines are subject to quotas.

SARS issues the Rules of Origin certificates required for qualifying exports. Exporters must also maintain the required documentation and comply with the scheme’s conditions to receive the tariff benefit.

For the supply chain, this means a shipment can be physically ready to leave South Africa but still be unable to move as planned if the documentation and customs requirements are not in order.

China is Only Another Link in the Chain

Once the cherries arrive in China, the journey is not over.

The shipment still needs to clear the relevant authorities, reach importers and move through China’s distribution network before reaching its final buyer.

That makes coordination across the entire journey particularly important.

A delay in South Africa does not simply mean a later departure. It reduces the time available for every stage that follows.

A New Market, And A New Logistics Opportunity

The Department of Agriculture expects the opening of the Chinese market to stimulate further investment in cherry production and estimates that it could create about 600 new jobs.

If production expands, the supporting supply chain will need to expand with it — from packhouses and cold storage to road freight, export services and international logistics.

That is what makes the agreement significant beyond agriculture.

South Africa now has access to a major new market. The next challenge is building a supply chain capable of getting those cherries there on time, in good condition and at a competitive cost.