- Infrastructure Investment Needed: The event highlighted how enhancements to South Africa's rail and port infrastructure are needed to improve performance
- Collaboration is Key: Stakeholders emphasised the necessity of public-private partnerships to modernise the logistics network and drive economic growth.
- Opportunities in Challenges: The "Business Outlook on Logistics" report notes that while challenges like port congestion exist, strategic investments and partnerships can unlock enormous growth potential.
Cape Town, 31 October 2024 - The critical role of transport and logistics in driving South Africa’s economic growth took centre stage at Wesgro’s annual Business Outlook event, held on Wednesday. The event, themed "Logistics for Growth and the Future" and hosted at Nasdak in the Media24 building in Cape Town, drew attention to the need for increased collaboration across the logistics value chain, improvements in rail and port infrastructure, and the alignment of public and private sector initiatives to stimulate economic growth.
During the event, Wesgro, in collaboration with the Southern African Association of Freight Forwarders, launched the Business Outlook on Logistics in the Western Cape, a publication that offers an overview of the province’s logistics sector. The report identifies growth opportunities, particularly the rapid expansion of air cargo, which is outpacing ocean freight and providing businesses with faster access to markets. It also notes the Western Cape’s emphasis on sustainability and smart logistics, backed by digital and synchro-modal innovations, which aims to improve efficiency and flexibility across various transport modes.
Western Cape Premier Alan Winde opened the event with a call for immediate action to strengthen the logistics sector and support export-led growth.
“It’s about action, and it’s about urgency. We need to stay focused until we rise to the top in port efficiency rankings. We have every ingredient to be highly competitive,” he said.
Echoing this sentiment, Provincial Minister of Agriculture, Economic Development, and Tourism, Dr. Ivan Meyer, emphasised the importance of logistics in job creation and achieving the Growth for Jobs Strategy target of 4-6% growth by 2035. "We are here today to find solutions for economic growth. The Premier tasked me with making job creation a priority and driving the Western Cape to a R1 trillion economy. By growing exports just 5% through our harbours, we can create nearly 23,000 new jobs in the Western Cape, according to Stellenbosch University’s Bureau of Economic Research. Our farmers need efficient, productive harbours, and we need to move with urgency,” said Meyer.
Cape Town’s Mayoral Committee Member for Economic Growth, Alderman James Vos, underlined the need for private sector involvement in port operations to boost the city’s competitiveness. “Double-digit growth in key sectors requires strategic focus, investments in special-purpose vehicles, workforce skill development, and business expansion. For Cape Town to reach its full potential, we must advocate for addressing key issues: easing visa requirements to attract global talent and tourists, expanding open skies to boost tourism and investment, and enabling private sector involvement in port operations. Our private sector is both capable and ready to help streamline logistics,” Vos added.
In a video address, Michelle Phillips, the CEO state-owned ports and railway operator, Transnet expressed the company’s commitment to collaborating with private partners to build a more efficient logistics system.
"Recent years have highlighted several challenges that disrupted our logistics chain’s continuity and efficiency," said Phillips. "We need to rethink our operations and prepare for the future. South Africa’s logistics sector must be modern, efficient, and resilient, which is why we are focused on transforming Transnet into a future-ready enterprise. Our mission remains to lower the cost of doing business, drive economic growth, and secure supply by providing cost-effective, efficient logistics infrastructure."
Phillips outlined Transnet’s strategic plan to address immediate operational issues, strengthen financial sustainability, and, importantly, work closely with the private sector. This includes creating more opportunities across the logistics value chain, making significant infrastructure investments, and allowing third-party access to Transnet’s rail network to encourage competition and efficiency. Furthermore, the company aims to increase container and bulk handling capacity at key ports like Cape Town, reducing turnaround times and easing congestion.
National government priorities are also aligned with enhancing logistics. In a recent weekly newsletter, President Cyril Ramaphosa described the role of the National Logistics Crisis Committee (NLCC), established last year to address issues in critical transport corridors. Ramaphosa highlighted the Freight Logistics Roadmap, which focuses on network security, operational efficiency, and infrastructure investment, noting that Transnet’s Network Statement, due by year-end, will facilitate third-party access to rail lines. "Our goal is for rail to transport at least 250 million tonnes of freight per year by 2029," said Ramaphosa, stressing the importance of public-private cooperation in achieving this target.
Strengthening Collaboration
Wesgro CEO Wrenelle Stander emphasised the central role of the Western Cape's logistics sector in supporting the region’s export-driven economy by connecting local industries to markets across South Africa and globally.
Stander noted that Cape Town’s key logistics hubs—the Port of Cape Town and Cape Town International Airport—are key gateways for imports and exports. She highlighted the airport’s strong growth in air cargo, which is providing businesses with quicker access to international markets. "To meet South Africa’s economic goals, we need a logistics network that’s modern, efficient, and ready for the future. Achieving this requires robust public-private collaboration to address infrastructure needs, overcome logistical challenges, and ensure seamless movement of goods," Stander said.
During the Business Outlook event, Stander facilitated two engaging panel discussions, the first of which was titled “Investing in the Future: The Role of Public-Private Partnerships in Delivering World-Class Logistics Infrastructure.” This panel brought together industry leaders, including Busisiwe Mavuso, CEO of Business Leadership South Africa; Dr. Andrew Shaw, Chief Strategy and Planning Officer at Transnet; Operation Vulindlela Rail & Logistics Advisor, Jaap Van Der Merwe; and Dr. Juanita Maree, CEO of the Southern African Association of Freight Forwarders. The panellists discussed the crucial role of public-private partnerships in strengthening the logistics sector, and the transformation of Transnet.
The second panel, “From Recovery to Excellence: Unlocking the Potential of the Port of Cape Town through Partnership,” featured insights from Ilse Van Schalkwyk of the Western Cape Department of Economic Development and Tourism, Oscar Borchards of Transnet Port Terminals, Antoinette Van Heerden from the Fresh Produce Exporters Forum, and Professor Joubert Van Eeden from Stellenbosch University. Other speakers included Mathys Enslin, Executive Vice President at DP World, and Jenny Mohanlall, Senior Director at DHL Express, who advocated for sustainable practices to reduce the logistics sector's carbon footprint. The event concluded with closing remarks from Terry Gale, Chairperson of Exporters Western Cape, reinforcing the theme of collaboration to strengthen the logistics sector and the broader economy.
ENDS