Logistics

A Game-Changer in South Africa’s Port Structural Reform

Published

3 weeks ago

October 8, 2026

Freight truck unloading cargo in a shipping yard.

By Andrew Pike, Head of Ports, Rail and Logistics and Lena Mangondo, Executive, Bowmans

Cabinet has just announced that Transnet National Port Authority (TNPA), the landlord port authority for South Africa’s eight ports, is to be corporatised as soon as possible. What this means is that TNPA will be removed as an operating division from the stable of Transnet SOC Ltd and will become a stand-alone state-owned corporation, completely independent of Transnet. Arguably, this is the biggest single port structural reform initiative since the passing of the National Ports Act (NPA) in 2005.

This action is not happening before time: The NPA itself envisaged Transnet being corporatised in a two-stage process, which was supposed to commence “as soon as this Act takes effect”. In other words, this reform has been delayed by over 20 years. What was envisaged in the NPA was that TNPA would initially become a subsidiary of Transnet and only later might become a state-owned corporation, completely independent of Transnet. This was the scenario painted by the President in 2021, but it appears that a decision has been taken to bypass the first step and simply move TNPA right out of Transnet’s influence. This is a welcome move and makes complete sense.

There are some compelling reasons for this initiative, chief among them being the critical need for TNPA’s operational independence. Currently, the biggest single terminal operator in South Africa is Transnet Port Terminals (TPT), a sister operating division of TNPA, which also sits within Transnet. This structural arrangement has long undermined market confidence: TNPA, which is responsible for awarding concessions and other port agreements, is completely conflicted when considering any tender for a port concession in which TPT is one of the bidders.

Similarly, TNPA is also (at least theoretically) required by the NPA to regulate terminal operator tariffs, yet would face an obvious conflict of interest if required to regulate TPT tariffs. By moving TNPA out of Transnet, this reform decisively resolves the “player–referee” conundrum that has raised suspicion amongst some sector participants. TNPA will now be positioned to operate as a truly independent authority, capable of awarding concessions and overseeing port operations on a level playing field where all market participants – including TPT – are treated equally. (Tariffs will in any event probably be regulated separately by the new single Transport Economic Regulator.) This structural separation is essential to instilling market confidence and ensuring that private sector operators can compete for port opportunities confident that the process is fair and free from institutional bias.

One of the other challenges within the incumbent structure is that TNPA, which is understood to be a profitable business, has to share its revenue with the wider Transnet Group. This effective cross-subsidisation has constrained TNPA’s cash flow and limited its ability to apply revenue exclusively to port upgrades and other initiatives that enhance the port system. As a stand-alone SOC, TNPA will benefit from greater transparency over its revenue streams and will be able to invest directly in much-needed port infrastructure. Equally important, this financial independence will support the move toward cost-reflective port user charges, ensuring that tariffs are set based on the actual costs of providing port services rather than cross-subsidising other business units within the Transnet Group.

The separation of TNPA is subject to several principles set by Cabinet, which include fair compensation for Transnet, long-term financial sustainability, fair allocation of liabilities between the Transnet Group and TNPA, protection of employees and customers, keeping strategic state ownership and control of national ports infrastructure and better investment capability and infrastructure development.

Cabinet has recommended that, as part of the reform, TNPA should partner with a Development Funding Institute (DFI). Once again, this will be significant. There are huge cash demands on the Transnet Group generally and TNPA in particular. For instance, TNPA has a planned berth deepening project in Durban which will require massive investment. Bringing in an equity partner will help TNPA to raise necessary funding for its various port projects around the country. A DFI should also be able to raise funds for TNPA at far more attractive interest rates. Further benefits of a DFI shareholder would include strong governance structures and project management skills.

Overall, the initiative is both welcome and exciting, but the implementation is not going to happen overnight. Leaving aside the valuation of the business and agreement on how Transnet will be compensated, one must bear in mind that all port agreements, whilst notionally with TNPA, are legally with Transnet. Accordingly, if TNPA is to continue as the Regulator and Landlord Port Authority, all of those agreements have to be transferred with the assets and rest of the business from Transnet to TNPA. This will, of course, require the agreement of counterparties, including for instance, funders who have concluded funding agreements with Transnet. These funders will want to ensure that such reform and the introduction of a DFI will not trigger any negative loan covenants and that both Transnet and TNPA will be capable of meeting their loan repayment obligations under the financing agreements. Lessons can be learnt in respect of the recent restructure of Eskom Holdings and the National Transmission Company.

Concessionaires will be looking closely at TNPA to determine whether it can meet potential obligations under existing port agreements which are currently carried by Transnet. It is no secret that the latter itself carries significant debt, so one might expect a review of Transnet’s financing agreements for disposal, change-of-control and negative-pledge provisions, followed by requests for lender consents or waivers and a renegotiation of the guarantee terms. There will of course be a number of other issues to address, including the employee transfer process.

None of this is insuperable but will all take time. It is difficult to predict how soon this will happen, but the Minister of Transport, Ms Barbara Creecy, told the Parliamentary Portfolio Committee, which sat recently, that she expected implementation to commence before year end, but to run into the new year.

The reform aligns with other major reforms taking place in the logistics sector, such as the unbundling of Transnet Freight Rail in order to create Transnet Rail Infrastructure Manager as a more independent regulator of the rail network and a separate Transnet Freight Rail Operating Company. All of this aligns with Government’s policy to invite greater private sector participation, but not to sell off the family’s silver by disposing of the infrastructure itself. This remains with Government.

Although reform is taking time, it now appears to have reached the stage where one can describe it as irreversible. This bodes well for the economy going forward.

Logistics

Runway to Railway Puts Innovation and African Identity at the Heart of Infrastructure

Published

3 days ago

October 27, 2026

SCN Africa

Smarter infrastructure, better connected transport systems and airport experiences that reflect African creativity were at the centre of Runway to Railway: Project Maverick, held at the Vineyard Hotel in Cape Town on 22 October 2026. The gathering brought aviation, technology and creative perspectives into a discussion about how innovation can improve infrastructure and the experience of the people who use it.

Held under the theme Simply Connect Africa, the event forms part of the Runway to Railway vision conceived by Anna K Hecart, founder and director of Connected Group. The platform brings different sectors together to explore connections between infrastructure, business and opportunity across the continent.

Panel discussion, from right to feft at Project Maverick: Dirk Ackerman, moderator; Nicholas Ferguson, Executive Managing Director, RSA Aero; Hasnain Motlekar, Acting Chief Executive Officer, BCX; and York Ning, Director, ICT Marketing & Solution Sales Department, Huawei South Africa.

Raising the Bar for African Infrastructure. Panel participants: Dirk Ackerman, moderator; Nicholas Ferguson, Executive Managing Director, RSA Aero; Hasnain Motlekar, Acting Chief Executive Officer, BCX; and York Ning, Director, ICT Marketing & Solution Sales Department, Huawei South Africa.

“Runway to Railway began with a belief that Africa’s progress depends on the connections we make between people, industries and ideas,” said Hecart. “We are pleased to announce the Runway to Railway Expo for November 2027. Our ambition is to bring the people shaping transport, infrastructure and technology together with investors and creative businesses to explore practical solutions and build partnerships that move Africa forward.”

The Expo is being developed as a meeting place for aviation, rail, logistics, infrastructure, technology, tourism and design professionals, alongside investors and public-sector stakeholders. Partners can expect opportunities to showcase their capabilities and connect with potential collaborators. Attendees can look forward to discovering innovations, exchanging ideas and exploring how better connected infrastructure can support African business and communities.

Anna K Hecart, Founder and Director of Connected Group and visionary behind Runway to Railway, addresses the attendees at Runway to Rail.

Anna K Hecart, Founder and Director of Connected Group and visionary behind Runway to Railway, addresses the gathering.

The infrastructure conversation brought the airport development perspective together with the technology expertise of BCX and Huawei. It considered how closer collaboration can support better passenger experiences, reliable operations and the practical delivery of connected infrastructure.

“The decisions that shape a passenger’s journey are made across many different organisations,” said Ackerman. “Bringing developers, operators and technology partners together early helps us see how those decisions fit together and where collaboration can make infrastructure work better.”

“An airport is part of a much wider economic network,” said Ferguson. “Its development needs to consider how people arrive, how businesses connect and how the surrounding region benefits. Innovation should support that wider purpose while making the everyday experience more efficient and welcoming.”

“The value of connected infrastructure lies in what it enables people and businesses to do,” said Motlekar. “Reliable networks, secure systems and useful information need to work together. Planning these capabilities from the outset helps organisations improve services and respond as demand changes.”

Gavin Rajah delivered the closing remarks, extending the conversation to the quality and character of retail experiences at African airports. He highlighted the opportunity to bring greater creativity and a stronger expression of African identity into spaces that shape travellers’ first and last impressions of a destination.

“An African airport should give travellers a real sense of place,” said Rajah. “Our retail spaces can do far more to showcase the continent’s design, fashion, food and craft. We have the talent and the stories. The opportunity is to present them with imagination and the quality they deserve, while creating space for African creative businesses to grow.”

Gavin Rajah, closing speaker, at the Runway to Railway conference, addresses creativity and African identity in the airport experience.

Gavin Rajah, closing speaker, addresses creativity and African identity in the airport experience.

Event photographs

The Raising the Bar for African Infrastructure panel at Runway to Railway: Project Maverick.

Panelists discuss the Bar for African Infrastructure panel at the Runway to Railway conference.

An exchange during the infrastructure panel discussion.

A panellist contributes discussing Project Maverick at the Runway to Railway conference.

A panellist contributes to the infrastructure discussion.

Presentation at the Runway to Railway conference.

An on-stage presentation during Runway to Railway: Project Maverick.

Guests exchange ideas during the luncheon at the Runway to Railway conference at the Vineyard Hotel.

Guests exchange ideas during the luncheon at the Vineyard Hotel.

Guests following the conference programme at Runway to Railway: Project Maverick.

Guests follow the programme at Runway to Railway: Project Maverick.

Guests enjoying a lunch at the Runway to Railway conference.

Guests seated during the event programme.

Guest listening to a presentation during lunch.

A guest listens during the luncheon.

Guests networking at the Runway to Railway conference.

Guests in conversation during the event.

Guests enjoying the opportunity to network at the Runway

Networking at Runway to Railway: Project Maverick.

Attendees at the Runway to Railway conference standing

Guests gather for a photograph at the Vineyard Hotel.

Guests attending the Runway to Railway conference, while networking outside.

Guests connect outside the event venue.

Attendees at the Runway to Railway conference networking inside the Vineyard Hotel.

Conversations continue between programme sessions.

Focused shot of a man and woman networking at the Runway to Railway conference.

A conversation during the event reception.

Two women networking in a lounge area at the Runway to Railway conference.

A conversation at Runway to Railway: Project Maverick.

*All photographs featured in this article were captured by: Elvis Nyelenzi

Logistics

SAFLA Launches Gauteng Region With Eric Pillay Appointed As Chairperson

Published

1 week ago

October 22, 2026

SCN Africa

Group photo of: Arend du Preez: Vice Chair of SAFLA, Gavin Kelly: CEO of the Road Freight Association, Jonathan McDonald: Vice Chair of SAFLA’s and Freek van Rooyen - Partner: Shipping & Logistics at Shepstone & Wylie.

The South African Freight and Logistics Association (SAFLA) has launched its Gauteng region, appointing Eric Pillay as regional chairperson and placing stakeholder engagement, border delays and port bottlenecks at the centre of its agenda.

Pillay, owner of Pro-Active Shipping & Freight Solutions, will lead the region’s efforts to strengthen industry representation and improve engagement with the organisations that influence cargo movement. “We work closely with SAFLA nationally to ensure that our issues are addressed,” Pillay stated, outlining how the Gauteng chapter will connect regional concerns with SAFLA’s countrywide advocacy and engagement.

The official launch breakfast at the Johannesburg Country Club in Woodmead, brought together freight and logistics colleagues and key stakeholders to mark the establishment of a regional platform supported by SAFLA’s national structures.

A Collective Voice for Gauteng

Pillay said the chapter responds to clearing and forwarding companies’ need for a collective voice in their dealings with organisations such as the Border Management Authority and other state-owned enterprises and shipping lines. Its first-year priorities centre on improving stakeholder relationships to boost trade and support regional growth, with border and port delays receiving immediate attention.

Pillay’s longer-term vision focuses on stronger partnerships and efficient cargo movement across Gauteng’s supply chains. “Transport is key to keeping the economy going and I would like to see increased cargo volumes moving efficiently, freely and safely.”

SAFLA Gauteng welcomes companies operating in clearing, forwarding and transport in Gauteng. Smaller and emerging operators can use its platform to raise concerns and access support in navigating industry challenges.

Regional Action Supporting National Reform

SAFLA chair Arend du Preez highlighted the association’s commitment to strengthening regional representation within a unified national framework. “By strengthening our regional representation, we ensure that local concerns are heard, local expertise is utilised, and local solutions can be developed while still benefiting from national support and coordination,” du Preez explained.

He emphasised constructive engagement between industry participants to identify the causes of disruption and resolve operational pressure points. “At the end of the day, our objective remains simple,” he said. “Cargo must move.”

Economic Regulation, Fair Access and Transparent Pricing Highlighted

Guest speaker Ian Bird, Transport & Logistics Focal Area Lead at Business for South Africa, addressed the business-government partnership and progress on logistics reforms, placing the regional launch within the broader effort to improve South Africa’s freight system.

Bird’s presentation highlighted the importance of effective economic regulation, fair access and transparent pricing in encouraging investment. “Effective regulation builds confidence and unlocks investment,” Bird highlighted in his presentation.

Ian Bird: Transport & Logistics Focal Area Lead – Business for South Africa

He also stressed that to deliver the freight volumes so urgently needed by the economy will require both improving the rail network for Transnet and private Train Operating Companies, as well as implementing a comprehensive program of structural reform. The growth in rail volumes will be driven by general freight, which by it’s very nature requires more complex supply chains being developed, operated and managed.

For SAFLA Gauteng, these national priorities reinforce the value of sustained regional engagement with supply chain stakeholders and coordinated escalation of members’ concerns.

SAFLA’s Gauteng chapter aims to help remove bottlenecks, reduce the costs associated with delayed cargo and support trade competitiveness through practical collaboration. Members can also raise local operational issues through SAFLA’s national structures.

Commenting on the launch, Road Freight Association (RFA) CEO Gavin Kelly said the RFA’s MoU with SAFLA means a “stronger, more coordinated industry voice,” while Warwick Lord, chairperson of the Multimodal Inland Port Association (MIPA), added that MIPA “looks forward to working with the association for the benefit of its members and the industry.” Paul Matthew, CEO of the African Meat Importers and Exporters Association added: “Importers and exporters depend on efficient, well-represented freight forwarders. We are proud to partner with SAFLA”.

Warwick Lord: Chairperson – Multimodal Inland Port Association (MIPA)

“It means a great deal to me to be part of SAFLA,” continued Pillay. “The industry has been longing for a voice to air their issues and now we have it.”

Eric Pillay: Owner – Pro-Active Shipping & Freight Solutions

Paul Matthew: CEO – African Meat Importers and Exporters Association

Logistics

Behind Every Life-Saving Treatment is a Reliable Logistics Network

Published

1 week ago

October 20, 2026

SCN Africa

Focused shot of a surgeon in scrubs walking away in scrubs carrying a cooler with life-saving treatment.

A surgical procedure was scheduled for the following morning when healthcare company Cardaxes urgently needed to move a critical vascular shipment into Namibia. A public holiday and customs-related delays left little room for error.

FedEx teams assessed the options, coordinated an air solution and stayed in close contact with the customer. The shipment arrived in time for the procedure.

Healthcare logistics requires more than moving products from one location to another. It calls for careful coordination, specialised handling and the ability to respond when conditions change. For time-critical shipments, every part of the journey matters.

Meeting Time-Critical Healthcare Needs

In healthcare, delivery timelines can be tied directly to procedures and treatment plans. A delayed medicine shipment or medical device can disrupt care and have consequences beyond the supply chain.

“Healthcare logistics operates on a different level of urgency,” says Nelson Teixeira, Managing Director of Operations for Sub-Saharan Africa at FedEx. “You’re not just moving packages; you’re supporting patient outcomes. Every shipment matters.”

The Cardaxes shipment highlights the role of operational expertise in managing unexpected challenges. Assessing route options, working through customs-related delays and coordinating the movement helped get the shipment to its destination in time.

Protecting Product Integrity

For vaccines, biologics, clinical samples and other temperature-sensitive products, maintaining the required temperature throughout transit is critical. Speed alone is not enough if product integrity is compromised.

FedEx offers temperature-controlled packaging designed to maintain temperatures of 2°C to 8°C for either 48 or 96 hours, depending on the option selected. Actual performance can vary with external temperatures, making it important to match packaging to the shipment and expected conditions.

A second shipment over the same weekend involved life-saving stem cells for a patient with blood cancer. FedEx Special Services helped coordinate the movement and provided updates throughout the journey.

Both cases highlight the importance of matching operational planning and shipment handling to the requirements of each healthcare shipment.

Using Visibility to Support Timely Decisions

Healthcare customers need information that helps them monitor critical shipments, identify potential risks and determine when intervention may be needed.

FedEx Surround combines near-real-time monitoring and predictive analytics to help teams identify potential disruptions and prioritise intervention. Sense Aware provides shipment information, including real-time location and temperature data, with alerts for selected conditions.

These capabilities support teams in assessing changing conditions and determining the appropriate response. This is particularly relevant across Sub-Saharan Africa, where customs processes, transport infrastructure and regulatory requirements can vary across markets.

The World Bank has highlighted the importance of improving connectivity and reducing barriers to trade across African markets. For healthcare businesses, effective cross-border logistics is an important consideration when planning the movement of sensitive products.

Planning for Reliable Delivery

Healthcare logistics depends on network capability, specialised handling and timely operational decisions. Involving logistics teams early can help healthcare businesses account for regulatory requirements, assess route options and determine the handling and visibility needed for each shipment.

As healthcare supply chains expand across Africa, these capabilities will remain important to moving medicines, medical equipment and other sensitive products across borders.

Reliable healthcare logistics means delivering the right product, within the required timeframe and in the right condition.