SA navigated through troubled waters with its port and rail networks − Ramaphosa

President Cyril Ramaphosa said despite the challenges at Transnet, South Africa managed to navigate the entity through troubled waters.

Ramaphosa made the remarks in his weekly newsletter From the Desk of the President on Monday.

Last week, Ramaphosa launched the first export shipment of goods produced by South African companies destined for other African countries under the preferential trade provisions of the African Continental Free Trade Area (AfCFTA) from the Durban port.

Tough times

Ramaphosa said South Africa has had tough times with its port and rail networks.

“For some years now the efficiency and competitiveness of our ports and rail network have been in decline. In order to give our companies the ability to take up these export opportunities we need to fix our logistics architecture.

Ramaphosa said Transnet had to contend with severe challenges, including the effects of state capture, the impact of the Covid pandemic, natural disasters and rising levels of theft and vandalism of its infrastructure.

“As a result, the volume of goods transported on our rail network has decreased significantly, forcing more companies to use trucks and causing congestion on our roads.

“Working together with the private sector, we are turning the situation around, guided by the Freight Logistics Roadmap that was crafted by Transnet, government and social partners. The roadmap outlines a clear set of actions to stabilise and improve Transnet’s performance in the short term and to fundamentally reform the logistics system in the long term,” Ramaphosa said.

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Exports

Ramaphosa said South Africa can also expect many more products and many more shipments to follow as local companies sell South African-made goods into the massive AfCFTA countries.

He said this already accounts for nearly a quarter of South Africa’s global exports.

“This figure will now increase quite dramatically,” he said.

Ramaphosa said this week’s Mining Indaba in Cape Town will also showcase the enormous potential of the mining industry to drive economic growth and job creation.

“The actions underway to improve the logistics system will help us to unlock this potential, given that mining companies depend on the rail network and ports to compete in global markets,” Ramaphosa said.

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