Cape town: The Department of Transport is ploughing ahead with the execution of reforms to drive the work of turning around passenger, freight, and logistics systems. This is the word from Minister Barbara Creecy, who presented the department’s Budget Vote in Parliament on Wednesday morning.
According to South African Government News Agency, prompt execution of reforms in the logistics sector is essential to address and reduce the risks present in both global and domestic environments. Creecy emphasized that effective implementation of these reforms is crucial for boosting growth and employment, though geopolitical tensions could influence foreign direct investment patterns.
The Minister outlined clear targets for the department, which include ensuring that 250 million tons of freight are carried on the Transnet network by 2029, improving the speed of loading and unloading ships, and facilitating 600 million passenger journeys per annum by 2030. Additionally, the Airports Company of South Africa (ACSA) aims to move some 42 million passengers and 1.2 million tons of airfreight by the end of this political term, while road fatalities are targeted to be reduced by 45% by 2029.
In terms of rail reforms, Creecy indicated the department’s intention to re-establish rail as the backbone of transport for people and goods. By May 2025, the Passenger Rail Agency of South Africa (PRASA) had successfully revived 35 out of 40 corridors and sections of service lines, achieving an unaudited figure of 77 million passenger journeys for the last financial year and projecting 116 million for 2025/26. The agency is set to receive R66.1 billion over the medium-term to maintain, recover, and renew rail infrastructure, rebuild the signaling system, and roll out new train sets to priority corridors.
On freight rail, the Minister assured the public of the department’s commitment to rebuild and modernize the capabilities of the state-owned freight logistics operator. She stressed the need for additional operators to extend the country’s freight logistics capabilities and highlighted the importance of private sector investment in infrastructure development. Following a Request for Information process, Transnet will issue Requests for Proposals from August 2025 to begin the formal procurement process, guided by the Private Sector Participation Framework approved by the Cabinet in 2023.
Despite the emphasis on private sector involvement, Creecy noted that the department is not waiting to proceed with necessary improvements. Immediate rehabilitation of the five priority rail corridors will be funded through Transnet’s existing budget, National Treasury submissions, and private investment. The hard work of the Transnet War Room has already resulted in significant increases in port volumes, rail tonnage, and containers handled in ports by the end of the 2024/5 financial year.