Government considering proposals to improve South Africa’s logistics system

President Cyril Ramaphosa responding to questions submitted by members of the National Council of Provinces (NCOP) at the NCOP Chamber, Parliament. Picture: Phando Jikelo/African News Agency (ANA)

President Cyril Ramaphosa responding to questions submitted by members of the National Council of Provinces (NCOP) at the NCOP Chamber, Parliament. Picture: Phando Jikelo/African News Agency (ANA)

Published Apr 6, 2023

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President Cyril Ramaphosa has received a number of proposals to improve the road, rail and ports infrastructure which he said the government would consider and announce a set of measures in the coming weeks.

The proposals were made to Ramaphosa during a virtual meeting on Wednesday evening with chief executives from key exporting economic sectors such as mining and minerals, the agricultural and forestry sectors, and the automotive and freight forwarding industry.

The sectors represent South Africa’s largest exporters who are reliant on the country’s road, rail and ports infrastructure.

Ramaphosa welcomed the proposals presented during the meeting, which were aimed at improving the state of South Africa’s national rail system and ports.

“We need to take urgent measures to resolve the logistics backlog that continues to undermine economic growth. I deeply appreciate the constructive manner in which all the impacted sectors have approached the resolution of this crisis,” he said.

Ramaphosa committed the government to consider some of the proposals presented and act on them quickly to unlock much-needed investment into the economy.

The talks with exporters followed a meeting the president held with members of the Transnet board and executive management at the Union Buildings in Pretoria last month.

At the meeting, the challenges facing the country’s logistics system, including the declining performance of the freight rail network, were discussed.

Ramaphosa directed Transnet to implement reforms swiftly and completely to turn around the crisis in the country’s logistics system.

In the coming weeks, he said, the government would consider and announce a set of measures that would add impetus to the work that was under way to improve rail and port efficiencies, and in line with the government policy direction for the freight transport sector in the White Paper on National Rail Policy and in legislation such as the National Ports Act and the Economic Regulation of Transport Bill that is currently before Parliament.

The president is also expected to meet organised labour representatives soon to concretise a collaborative effort that will be co-ordinated from the Presidency.

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