According to some, South Africa's state-owned entity, Transnet, shows encouraging signs of progress. The Northern Corridor, which is a significant rail route within the country, has seen an increase in freight volumes. This route is responsible for about 41% of total Transnet Freight Rail volumes.
Transnet recently stated it aims to handle a significant volume of export freight for the financial year ending March 2024. The recent improvements in rail performance could recover some of the R150 billion in lost sales due to Transnet inefficiencies in 2022, which cost the economy nearly 5% of GDP in 2023.
Additionally, Transnet Ports reports a significant reduction in backlogs of vessels at the Durban Container Port and improvements at the Cape Town Container Terminal. According to Jan Havenga, a professor of logistics at Stellenbosch University, the turnaround in Transnet's performance is largely due to personnel changes.
Earlier this year, President Cyril Ramaphosa established the National Logistics Crisis Committee (NLCC) to address key bottlenecks and inefficiencies at Transnet. Juanita Maree, CEO of the SA Association of Freight Forwarders, noted the progress since the business's involvement in the NLCC, particularly at the Durban Container Terminal Pier 2.
Source: moneyweb.co.za