MOVE October 2025

COMPREHENSIVE LOGISTICS SERVICES

With a legacy extending over 125 years, Savino Del Bene has developed a strong and steady presence in global logistics and freight forwarding. Established in Florence, Italy, early in the 20th century, the company has grown to operate across more than 60 countries. In South Africa, its offices in Johannesburg, Cape Town, Durban and Port Elizabeth (Gqeberha) leverage the country’s strategic position as a gateway to African trade. The local branch offers comprehensive logistics services, including air, ocean and overland freight forwarding, customs brokerage, bonded warehousing and end-to-end logistics management. This covers warehousing, distribution and handling specialised cargo such as perishables, oversized items and high-value goods.

Savino Del Bene’s expertise touches multiple sectors, from automotive and fashion to food, pharmaceuticals, break-bulk and wine. By combining international reach with in-depth local knowledge, the company supports South African businesses in navigating complex supply chains and expanding their market access across Africa and beyond.

COMPREHENSIVE FLEET MANAGEMENT SOLUTIONS

Standard Bank Business and Commercial Banking offers a comprehensive selection of award-winning fleet management solutions designed to optimise fleet efficiency and reduce operational costs for businesses of all sizes.

With a deep understanding of the challenges inherent in managing a vehicle fleet, Standard Bank provides tailored products and services that enhance control, security and savings. At the core of our offering are versatile payment solutions, including the chip-and-PIN Visa Fleet Card and prepaid fleet cards, which streamline fuel, oil, and maintenance purchases while providing real-time transaction monitoring. This detailed oversight can be managed through the advanced Fleet360 platform, an intuitive online portal that offers powerful reporting and data analysis for informed decision-making.

Beyond payments, Standard Bank’s fleet services extend to managed maintenance programmes and full maintenance leasing or rental options, ensuring vehicles remain operational and compliant with safety standards. Value-added services, such as diesel rebates, toll management and fines and vehicle licenses management tools, further empower businesses to run their fleets effectively.

By leveraging its industry expertise and innovative technology, Standard Bank Fleet Management delivers a holistic solution that drives productivity and cost savings, allowing businesses to focus on their core operations.

For more information: www.standardbank.co.za

STRENGTHENING REGIONAL SUPPLY CHAINS

AGL is a trusted logistics operator in Africa, offering logistics, port, maritime and rail solutions. With 23 000 employees in 50 countries, AGL leverages its developed expertise to provide tailored and innovative services to its African and international clients. AGL’s ambition is to make a lasting contribution to Africa’s transformation. AGL is also present in Haiti, East Timor and Indonesia.

In South Africa, AGL has a long-standing presence through AGL South Africa, BALSA and AGL Terminals, supporting trade and economic growth through sustained investments in infrastructure, technology and port development. This enduring engagement reflects AGL’s commitment to strengthening regional supply chains and contributing to sustainable economic transformation.

Driven by its ambition to make a lasting impact across Africa, AGL continues to expand its capabilities and invest in solutions that connect communities and markets.

For more information: www.savinodelbene.com

For more information: www.aglgroup.com

MOVE

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ON TRACK TO GREATER RESILIENCE

With abundant natural resources, a diversi ed economy, sophisticated nancial and legal frameworks and advanced infrastructure, South Africa remains the economic powerhouse of Africa. However, continuing issues within logistics and supply chains threaten to derail this dominance (in some instances quite literally).

In this inaugural issue of Move, we examine the pain points facing supply chains across South Africa and beyond, along with innovations and solutions that are helping to address these.

We look at how government is responding to the imposition of United States tariffs through its recently launched Export Support Desk, and how the African Continental Free Trade Area aims to boost intra-African trade, which is essential to weather this trade storm and build greater economic resilience across the continent.

Unbundling Transnet has long been seen as necessary to improve our logistics

infrastructure, a move that has been given a shot in the arm by a $1.5-billion development policy loan from the World Bank. Equally encouraging is the opening up of rail infrastructure to private operators, which should help revitalise this critical mode of transport and shift freight volumes off roads. It will take a long time for this to happen, however, which is why improvements need to be made in the short term to make trucking more sustainable, including greater collaboration between all stakeholders.

Such collaboration can be facilitated through a uni ed logistics platform, trialled successfully in India, which we examine to see how applicable it is in the South African context. We also look at last-mile delivery, which is increasingly important for small to medium enterprise development, and the ever-important question of building resilience in supply chains. Because ultimately, economic resilience rests on the strength and effectiveness of our supply chains and logistics infrastructure.

Anthony Sharpe

8 EXPORTS

In response to US tariffs on local exports, government has launched an Export Support Desk for affected industries.

13 TECHNOLOGY

A uni ed logistics platform can improve transparency, enable real-time cargo tracking, reduce logistics costs and promote compliance and innovation.

19 CROSS-BORDER TRADE

How the African Continental Free Trade Area aims to boost intra-African trade, galvanise economies and lift millions out of poverty.

28 LAST-MILE DELIVERY

Last-mile delivery often comprises the most expensive leg of logistics – and the most important.

30 RESILIENCE

How to build supply chain resilience in an uncertain world.

31 PORTS

New cranes at Cape Town Container Terminal are helping to boost productivity.

34 RAIL

The selection of 11 private train operators in South Africa is expected to boost rail volumes, attract private investment and enhance economic growth.

42 SUSTAINABILITY

South Africa’s logistics industry needs to reduce its carbon footprint for the economy to remain competitive.

44 FINANCE

Finance from the World Bank is aiding reforms and the unbundling of Transnet.

TACKLING THE TARIFF CHALLENGE

In response to the United States’ imposition of exorbitant tariffs on local exports, government has launched an Export Support Desk for affected industries. RODNEY WEIDEMANN examines what it might do for businesses and the economy

South Africa’s Department of Trade, Industry and Competition (dtic) launched an Export Support Desk (ESD) in August 2025 to assist exporters affected by the recent 30 per cent United States’ (US) tariff hike on local products.

According to a dtic spokesperson, the ESD focuses on providing tailored advisory services to exporters on alternative destinations, guidance on market entry processes, insights into compliance requirements and linkages to South African embassies and high commissions abroad.

The department states: “In addition to issues linked to diversi cation and markets, the ESD has also been processing enquiries with regard to updates on negotiations, details on tariffs and implementation and developments on economic response measures. These enquiries are forwarded to the various units and entities in government responsible for the relevant areas for follow-up and responses.”

Tafadzwa Chibanguza, CEO of the Steel and Engineering Industries Federation of Southern

Africa, notes that around eight per cent of the sector’s total exports go to the US, equating to around R32-billion, the loss of which would likely lead to downsizing and job losses. “Our steel, zinc and copper exports have attracted a fty per cent tariff due to these metals being deemed a strategic US industry, which is a really high wall to overcome. The balance of products from this sector, such as pumps and valves, face a thirty per cent tariff.”

Fast fact

The citrus industry employs 140 000 people and exports R1.8-billion in citrus to the United States annually. The new tariffs could make these exports unviable, and hundreds of thousands of cartons may go unsold. Other agricultural products like wine and macadamia nuts also face severe challenges, especially for smallholder farmers.

Source: Deloitte

An additional concern, Chibanguza states, is that these engineering products are typically higher value and unique, in that they are custom-made for their speci c market. This means that if you lose access to that market, you will lose the market for these products entirely, because they are from a production line set up speci cally to service the US. “The other major challenge for us is that there are other nations with a similar basket of products that face lower tariffs, and this relative advantage will have long-term implications for our industry.

In addition, the idea of market diversi cation is not that simple in practice because it takes a long time to achieve. After all, if these markets were already pro table, others would already be exploiting them.”

OPPORTUNITIES AMID THE CHALLENGES

Mikel Mabasa, CEO at the Automotive Industry Export Council, adds that South Africa’s automotive exports to the US now face material cost disadvantages, raising concerns about pricing competitiveness and pro tability for multinational original equipment manufacturers operating domestically.

“OUR STEEL, ZINC AND COPPER EXPORTS HAVE ATTRACTED A FIFTY PER CENT TARIFF DUE TO THESE METALS BEING DEEMED A STRATEGIC US INDUSTRY.” – TAFADZWA CHIBANGUZA

This is evident in how domestic vehicle exports to the US decreased by 87.4 per cent during the second quarter of 2025 compared to the previous year.

“For South Africa, the primary impact relates to the loss of around twenty- ve thousand vehicles per annum to the US,” says Mabasa. “However, the secondary impact of increased competition for the bulk of vehicle exports to other markets could potentially pose an even bigger risk, as every other country is in a similar position and will be pursuing alternative export markets.

“Diversifying into new markets is not easy for volume exports lost to the US market, as the automotive industry already exported vehicles and components to one hundred and fty- ve markets in 2024.”

The dtic’s Export Support Desk is part of the department’s ve-point strategy of non nancial measures to support vulnerable rms and workers, continues Mabasa. Initiatives are appreciated by the industry in general, but some areas require further clari cation to achieve tangible bene ts for affected businesses. “Ultimately, the idea of the ESD is good, but most businesses will require nancial support measures – tax incentives or means to pay salaries – until such time that alternative export markets can be found.

“Furthermore, the automotive sector, heavily reliant on stable supply chains for components and raw materials, may experience volatility in both costs and availability, necessitating strategic risk management and the diversi cation of supply sources.”

ESD AS A BUFFER

Dr Jacob van Rensburg, head of research and development at the Southern African Association of Freight Forwarders, explains that the ESD can buffer immediate shocks by guiding exporters on compliance, fast-tracking tariff impact assessments and co-ordinating sector-speci c support.

“Government backing through such mechanisms signals a commitment to preserve industrial capacity, particularly as the African Growth and Opportunities Act (AGOA) renewal remains uncertain,” he says. “For the auto, steel and agriculture sectors, ESD assistance means better navigation of customs and standards while also lobbying for exemptions, which the industry hopes the ESD will signi cantly help with. Linking rms to diplomatic channels also supports South Africa’s push for tariff relief and strengthens credibility in upcoming bilateral negotiations with the US Trade Representative.”

“ANY SHIFT AWAY FROM THE US MARKET REQUIRES COMPANIES TO RECONFIGURE THEIR SUPPLY CHAINS, ADJUST LOGISTICS AND FOCUS ON SERVING A BROADER RANGE OF INTERNATIONAL MARKETS.” – OLEBOGENG

RAMATLHODI

However, Dr van Rensburg further notes that there is a caveat to this: shifting international trading patterns is something that does take signi cant time – often years, rather than months. “The ESD should therefore focus on diversifying into the African continental market, as there has been a rise in intra-African trade of up to twenty-two per cent, by some metrics. It should do the same with BRICS and the EU market, while maintaining pressure for the renewal of AGOA. Compliance support, especially around US technical standards, will help to safeguard ongoing trade, while diplomatic linkages are always vital in negotiations.”

MAINTAINING RESILIENCE

The ESD initiative is a key part of South Africa’s efforts to protect its economy, support diversi cation and maintain resilience in a changing global trade environment, suggests Olebogeng Ramatlhodi, indirect tax leader at Deloitte Africa. He points out that the automotive sector, employing around 115 000 people, has been hit hard, with export volumes to the US dropping by 73 per cent in early 2025, and escalating further in the following months.

“The overall tariff burden on automotive goods now stands at fty- ve per cent, making local exports largely uncompetitive,” says Ramatlhodi. The industry has already witnessed 12 company closures and over 4 000 job losses recently, with an additional 30 000 jobs at risk.

“Any shift away from the US market requires companies to recon gure their supply chains, adjust logistics and focus on serving a broader range of international markets. Nonetheless, market diversi cation and regional integration create opportunities for increased local manufacturing and content. For example, a ve per cent increase in local content could add thirty-billion rand in procurement, potentially outstripping the value of lost US exports.”

Ramatlhodi notes that the ESD’s success is contingent on it learning from previous shortcomings, focusing on practical, measured outcomes and truly putting exporters at the centre, especially small and new businesses. “It is still early days, but the truth will be in the success realised by industries in the short to medium term. Trade ow diversi cation is a complex terrain to navigate, and for this to be impactful, government has to be intentional and consistent in the support provided.”

FUNCTIONS OF THE EXPORT SUPPORT DESK

According to consulting firm Deloitte, these are the core functions of the Export Support Desk:

• Market intelligence and updates: regular data on trade policy and developments.

• Alternative market identification: support for finding and accessing new export destinations.

• Market entry guidance: help with market entry strategies and understanding of regulatory requirements.

• Compliance assistance: advice on international standards, certifications and regulatory compliance.

• Diplomatic network assistance: connections to embassies and trade missions, to facilitate new business opportunities.

Follow: Tafadzwa Chibanguza www.linkedin.com/in/tafadzwachibanguza Mikel Mabasa www.linkedin.com/in/mikel-mabasa-628bb76 Dr Jacob van Rensburg www.linkedin.com/in/jacob-van-rensburg-420912119 Olebogeng Ramatlhodi www.linkedin.com/in/olebogeng-ramatlhodi-7740403a

PREDICTABILITY IS THE NEW CURRENCY

VERNON SINDEN, head of logistics at Investec Business Banking, explains why South African businesses must embrace data-driven logistics

In today’s hyper-connected world, global trade is no longer shielded from economic shocks and political turbulence. What happens in one region ripples quickly across borders, creating complexities that disrupt supply chains and put pressure on business margins.

It’s no surprise then that 94 per cent of companies have reported revenue impacts from supply chain disruptions, according to Electro IQ’s Supply Chain Statistics and Facts (2025). The new reality? Predictability isn’t just a competitive advantage; it’s the currency that drives resilience, growth and customer trust.

THE POWER OF PREDICTIVE TECHNOLOGY

According to a World Economic Forum article on supply chains , the widespread adoption of advanced technologies will accelerate the digitalisation of supply chain management and fundamentally reshape how products and services move.

With predictive technology, businesses can prepare more effectively and make sharper decisions – an invaluable advantage in an industry de ned by constant uncertainty. For companies that embrace these tools, the reward is clear: optimisation, ef ciency and agility.

Agility has become the lifeline of modern supply chains. With the logistics sector recently contributing 0.2 per cent points to South Africa’s gross domestic product, as reported in a September government press release, ensuring stability in this space is critical. Predictive technologies, powered

by real-time data on freight rates, vessel movements and demand trends, enable businesses to forecast disruptions, mitigate risks and streamline operations.

International holidays such as Golden Week or Chinese New Year – once notorious for stalling shipments across major routes – can now be managed with foresight. Predictive tools allow companies to plan ahead, reroute cargo or leverage alternative carriers. This is predictability in action, turning uncertainty into opportunity and safeguarding performance in a volatile market.

MANAGING COSTS THROUGH FORESIGHT

From fuel price surges to unexpected delays, the nancial toll of disruption is and continues to be unavoidable. Yet businesses with access to the right capital and advisory services can pivot quickly, adjust strategies and minimise losses.

Having access to working capital can afford businesses the exibility to readjust their shipping strategies to avoid delays. However, the most effective partnerships go beyond nancing: they combine risk management, digital tools and tailored payment solutions to give businesses exibility today, and also position them for future growth and the resilience needed tomorrow.

RESILIENCE AS STRATEGY

There is no doubt that tomorrow will have disruptions. Disruptions will keep evolving – whether geopolitical, environmental

Vernon Sinden

THE IMPLEMENTATION OF ADVANCED DATA ANALYTICS WILL PROVIDE DEEPER INSIGHTS INTO SUPPLY CHAIN PERFORMANCE, DEMAND FORECASTING AND MARKET TRENDS.

or technological. The only constant is uncertainty. That’s why innovation, underpinned by advanced analytics, must anchor reinvention. The implementation of advanced data analytics will provide deeper insights into supply chain performance, demand forecasting and market trends. By harnessing such deeper insights, businesses can anticipate challenges before they materialise.

Ultimately, those who invest in predictability will do more than survive; they will lead. The digitalisation of supply chains is reshaping how goods move and businesses grow, and companies that embed predictability into their DNA will not only protect against shocks, but also unlock the optimisation the industry has been waiting for.

Predictability is no longer optional; it is the new currency of global trade.

CAN SOUTH AFRICA UNIFY ITS LOGISTICS SYSTEMS?

Following the success of India’s unified logistics platform, South Africa should be seeking the benefits a similar implementation can offer, writes RODNEY WEIDEMANN

India’s Uni ed Logistics Interface Platform (ULIP) aims to create a seamless, technology-driven logistics ecosystem by integrating data from government and private sources into a single, application programming interface-based portal.

This should improve supply chain ef ciency and transparency, enable real-time cargo tracking, reduce logistics costs and promote compliance and innovation. The potential impact is clear, raising the question of whether South Africa’s logistics sector could bene t from a similar proposal.

Zak von Gordon, associate director for strategic transformation at Deloitte Africa, says we should be inspired by India’s success. “A local ULIP that integrates logistics systems, data and stakeholders for seamless operations could address fragmented data, inef cient customs, high costs and poor supply chain visibility. This could potentially reduce logistics expenses by ten to twenty per cent annually.”

Dr Jacob van Rensburg, head of research and development at the Southern African Association of Freight Forwarders, adds that the issues handled by a ULIP have been on the radar of trade, transport and logistics professionals for quite some time. “The best examples in our industry currently relate to Maritime Single Windows (MSW) and Port Community Systems (PCS). The former is an

electronic platform that enables the electronic exchange of information required for the arrival, stay and departure of ships in ports. The MSW should harmonise data through standardised, interoperable electronic messages, based on the International Maritime Organisation Compendium on Facilitation and Electronic Business. This should ensure consistent and high-quality data exchange. “The PCS, on the other hand, focuses on the operations and commercial business aspects of port logistics. The PCS has a business-to-business characteristic, while the MSW has a business-to-government characteristic.”

STAKEHOLDER BENEFITS

A ULIP could offer many bene ts, says van Rensburg. For one, it would enable the intelligent and secure exchange of information between all stakeholders – public and private –in the extended ports environment. “It can drive productivity, ef ciencies and competitiveness, while improving a port’s digital and transactive attractiveness. Furthermore, when working smoothly, it can connect port users and supply chain participants and allow them to share information ef ciently on a single platform by

LESSONS FROM INDIA’S UNIFIED LOGISTICS INTERFACE PLATFORM

India’s ULIP connects 43 systems from 11 ministries via 129 application programming interfaces (API), handling over 1 billion API transactions since its launch in 2022. Results include:

• 30 per cent fewer shipment delays.

• Cost savings of up to 20 per cent.

• Support for sustainability and emissions reduction.

Source: Deloitte

drawing data from different enterprise resource management systems.”

Von Gordon suggests there would also be enormous integration and ef ciency gains, including through data centralisation, unifying sources for accurate, consistent information and better decision-making. “Real-time processing, meanwhile, can eliminate delays and errors, optimising logistics in dynamic environments, while advanced analytics enable predictive planning and proactive issue resolution.”

Moreover, adds von Gordon, customs should be streamlined thanks to paperless processes and automation, reducing human error and delays. “Meanwhile, it can assist with multimodal transport by integrating road, rail, air and sea data, for optimal route planning and seamless modal shifts.”

Of course, there are challenges in pulling this off in Africa, notably limited transport networks and infrastructure, including digital connectivity, regulatory diversity across the continent and language and payment issues.

“The keys to success, however, would ultimately include robust cybersecurity for the centralised data and market-speci c digital infrastructure and skills,” says von Gordon. “Stakeholder education and phased adoption are also critical, while it requires high-level support and broad engagement between the public and private sectors to drive adoption.”

Ultimately, says von Gordon, a ULIP would offer South Africa the chance to modernise its logistics sector, lower costs and improve global competitiveness. “Success depends on collaboration, infrastructure investment, government leadership and – most crucially –lessons learned from India’s experience that are adapted thoughtfully to Africa’s unique context,” he concludes.

Follow: Zak von Gordon www.linkedin.com/in/zakvongordon Dr Jacob van Rensburg www.linkedin.com/in/jacob-van-rensburg-420912119

SA exporters rethink shipping strategies

The withdrawal of the direct maritime service that connects South Africa to the East Coast of the United States, is forcing exporters to rethink their strategies

With goods now being rerouted via transshipment hubs, exporters face increased lead times, additional handling and higher exposure to risk. For the fruit industry, extended transit windows can affect shelf life and compromise market positioning.

Automotive and manufacturing supply chains that depend on tightly managed schedules are being equally exposed to costly delays and increased storage requirements.

Industry analysts from Investec and the South African Maritime Chamber (MBC) note that the broader implications extend beyond immediate operational hurdles. A reduction in direct connections can trigger a structural rise in costs, erode reliability and ultimately affect South Africa’s attractiveness as a trading partner. Exporters with thin margins are particularly vulnerable, making strategic responses essential.

INCREASED COMPLEXITY IN SUPPLY CHAINS

The withdrawal of this direct service adds layers of complexity to export logistics. Where previously planners could count on predictable times and fewer touchpoints, they must now contend with additional variables. More handoffs increase risk of delay and damage. Congestion at major hubs may lengthen waiting times unpredictably.

ADAPTING TO A CHANGING LANDSCAPE

In response, exporters are adopting three practical measures to mitigate the impact:

• Rerouting strategically – Identifying alternative hub ports, such as Singapore, Hamburg or Dubai with consistent US connectivity.

•Carrier diversi cation – Working with multiple carriers to spread risk and reduce dependency on any single shipping line or route.

• Risk management – Introducing contingency frameworks to deal with bottlenecks, including emergency storage or alternate transport modes.

ROLE OF EXPERT PARTNERS

While exporters can implement many of these strategies independently, the complexity of rerouting, carrier negotiation and schedule optimisation requires specialist expertise. Savino Del Bene South Africa is playing a key role in supporting clients through this transitional phase by offering tailored solutions focused on minimising disruption.

Addressing these challenges requires not only operational adjustments but also strategic foresight. Exporters supported by savvy logistics partners can position themselves to weather the disruption and capitalise on emerging opportunities.

BUILDING RESILIENCE FOR THE FUTURE

The company’s approach includes a thorough assessment of the market conditions, an analysis of client-speci c needs and agile operational adjustments. We leverage a broad portfolio of partnerships that gives clients access to a network of alternative shipping corridors. By managing relationships and providing critical market intelligence, we enable exporters to adapt with greater con dence.

ECONOMIC AND COMPETITIVE CONSIDERATIONS

The shipping service withdrawal affects more than just logistics operations – it also has signi cant economic and trade implications. Reliable and cost-effective access to global markets is essential for sustaining South Africa’s export growth and maintaining its position in international value chains.

Higher freight costs can translate into reduced price competitiveness, which may lead importers to source wares from alternative markets. In industries where shelf life is closely tied to transit times, the impact can be even more signi cant. Manufacturing sectors dependent on predictable shipments may face risks that ripple through domestic production, affecting jobs and economic output.

The withdrawal of the AMEX service highlights a broader global shift towards more dynamic and unpredictable shipping landscapes. Political developments, port capacity constraints and evolving trade patterns mean no single route or service can be taken for granted. For South African exporters, resilience has moved from an operational concern to a core strategic priority – companies with exible supply chains, diverse carrier relationships and informed risk management will be better equipped in periods of uncertainty.

According to Kobus Maree, managing director of Savino Del Bene South Africa, “Shipping disruptions are not new, but the pace and scale of change we are seeing globally emphasises how critical resilience has become for local exporters. Companies that respond decisively, with forward-looking logistics strategies, will be able to safeguard their competitiveness and retain access to key markets.”

The withdrawal of direct maritime connections to the East Coast of the United States calls for pragmatic adaptation rather than reactive responses. South African exporters must therefore create space for innovation in their supply chain management.

Savino Del Bene South Africa continues to support exporters with actionable solutions, to help them navigate the disruption effectively and maintain smooth market access. In a period marked by change, thoughtful planning and partnerships grounded in expertise remain essential to the country’s export success.

Follow: Savino Del Bene www.linkedin.com/company/savinodelbene/posts/?feedView=all

BEYOND BORDERS

Intra-African trade has the potential to boost economies and lift millions out of poverty, but faces a host of challenges. ANTHONY SHARPE examines how the African Continental Free Trade Area hopes to solve these

Spanning 30.4 million square kilometres and 54 countries, and home to an estimated 1.5 billion people speaking thousands of languages, Africa is as varied as it is vast. As the continent’s economies diversify beyond the minerals and oil that have historically de ned them – and driven centuries of exploitation –opportunities are growing exponentially, too. Its natural resources remain abundant, while rapid growth in population, urbanisation, consumer spending and digital connectivity are creating dynamic new markets for businesses looking to expand beyond saturated mature markets.

However, the vastness and variety that de ne Africa are re ected in the dif culties facing cross-border trade, including poor infrastructure, limited logistics expertise and security concerns.

Dr Jacob van Rensburg, head of research and development at the South African Association of Freight Forwarders (SAAFF), says that from a freight forwarder’s perspective, the challenges are less about a single bottleneck and more about the interaction of infrastructure, documentation and border processes –along with the overall lack of harmony in the region.

“As far as infrastructure is concerned, many corridors remain underdeveloped or poorly maintained, with road transport costs up to one hundred and seventy- ve per cent higher than in other regions,” says Dr van Rensburg. “Rail is fragmented and ports face congestion, while approximately eighty per cent of cross-border trade in Africa is still via the road modality.”

Fast fact

Intra-continental trade currently accounts for only about 15 per cent of Africa’s total trade, compared to over 60 per cent in Europe and nearly 50 per cent in Asia.

Source: United Nations Conference on Trade and Development Economic Development in Africa Report 2023

differing customs, transport and licensing regimes across the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa, and the East African Community that create duplication and delays. “We also have legacy systems, the automated system for customs data on different levels of maturity at different customs and a bunch of other transport ‘systems’ in the region, not to mention other government agencies not being on the digital platform.

Dr Jacob van Rensburg

Dr van Rensburg cites documentation and regulatory misalignment issues, including

“Border processes face queues, inconsistent application of rules and overlapping agencies driving dwell times and unpredictability.”

FREEING UP TRADE

Of cially in effect since the start of 2021, the African Continental Free Trade Area (AfCFTA) is one of the African Union’s agship initiatives. AfCFTA is a trade agreement that creates the world’s largest free trade area by number of

THE AfCTFA BY NUMBERS

AfCFTA unites 1.4 billion people across 55 African countries, creating the largest free trade area in the world by population.

If fully implemented, AfCFTA could add +$450-billion to Africa’s gross domestic product by 2035.

(Source: World Bank).

The agreement could help lift 30 million people out of extreme poverty and create millions of new jobs across multiple sectors.

Participating states aim to remove tariffs on 97% of tariff lines, which represent at least 90% of import value.

Intra-African trade is 15% of total trade today; experts say it could rise well above 50% under full integration.

“COUNTRIES ARE MAKING COMMITMENTS TO LIBERALISE THEIR TRANSPORT SECTORS. AT THE SAME TIME, WE ARE NEGOTIATING A REGULATORY FRAMEWORK FOR TRANSPORT.” – DR JACOB VAN RENSUBRG

participating countries, including all Africa’s 55 nations except Eritrea, thus far. It is intended to eliminate tariffs on up to 90 per cent of goods, reduce nontariff barriers and allow freer movement of goods, services, investment and ultimately people across the continent.

The AfCFTA Protocol on Trade in Goods has nine annexes, several of which deal with customs and border management matters, including customs co-operation and mutual administrative assistance, elimination of nontariff barriers and trade facilitation, explains Trudi Hartzenberg, executive director of the Trade Law Centre. “For example, quite a number of African customs authorities have authorised economic operator (AEO) schemes, which recognise compliant enterprises and provide bene ts such as expedited clearance of goods. Mutual recognition of AEO schemes could have a multiplier effect, with bene ts for compliant traders both at point of export and import across the continent.”

Dr van Rensburg says that SAAFF, through Business Unity South Africa, is

Fast fact

The World Bank projects that the African Continental Free Trade Area could boost intra-African trade by 52 per cent by 2035, potentially lifting 30 million people out of extreme poverty.

the respective countries – the reality is that there are still signi cant disparities in terms of the harmonisation of the framework.”

A BOOST FOR INDUSTRIALISATION

While AfCFTA’s primary goal is to boost intra-African trade, Hartzenberg believes it can also provide a shot in the arm to industrialisation. “Only seventeen per cent of Africa’s exports are destined for other African countries (2024 data). Trade transaction costs, including delays at border posts and cumbersome trade processes, remain comparatively high on the continent, while disharmonised regulations and complex rules of origin in some regional trading agreements effectively constitute nontariff barriers, which are much higher than actual tariff barriers on the continent.” Hartzenberg says these erode competitiveness, with the result that it is cheaper and more ef cient to import commodities and goods from other countries. However, the fact that so few countries have developed and diversi ed industrial sectors represents another barrier to greater continental trade. “For this reason, AfCFTA has been adopted as a framework for Africa’s industrialisation to support value addition and diversi cation of productive structures on the continent. In the medium to longer term, this will make a difference, as countries develop their capacity to produce tradeable goods competitively and change how and what they trade among themselves and with global partners.”

GETTING THE INFRASTRUCTURE IN PLACE

Of course, to develop and diversify industrial and commercial capacity, infrastructure

“AfCFTA HAS BEEN ADOPTED AS A FRAMEWORK FOR AFRICA’S INDUSTRIALISATION TO SUPPORT VALUE ADDITION AND DIVERSIFICATION OF PRODUCTIVE STRUCTURES ON THE CONTINENT.” – TRUDI HARTZENBERG

AN INITIATIVE TO BRING STAKEHOLDERS TOGETHER

The Southern African Association of Freight Forwarders (SAAFF) recently launched a cross-sectoral consultative initiative. The initiative brings together freight and logistics stakeholders, including the South African Revenue Service, the International Trade Administration Commission of South Africa, the National Regulator for Compulsory Specifications, the South African Health Products Regulatory Authority and the Border Management Authority, along with key government and regulatory bodies.

SAAFF head of research and development Dr Jacob van Rensburg says recent consultations have highlighted three golden threads:

• The need for binding commitments under the African Continental Free Trade Area (AfCFTA), with stakeholders being clear that vague liberalisation pledges are insufficient; time-bound and enforceable schedules are needed.

• Digitalisation is not optional, as interoperability and shared standards are the backbone of efficient logistics.

• The private sector must be included, with forwarders, truckers and small to medium enterprises requiring formal representation in corridor design and regulatory dialogue. “These insights signal a path forward: structured public-private dialogue, phased compliance measures and investment in corridor digitalisation,” says Dr van Rensburg. “Together, these can transform Africa’s logistics system from fragmented to integrated, unlocking the full potential of AfCFTA.”

is needed – and not just in the sense of transport and ports, as digital and energy infrastructure are now equally important.

“Digitalisation is central to making AfCFTA workable,” says Dr van Rensburg. “Without interoperable systems, regulatory commitments won’t translate into real facilitation. However, the different declaration systems in place (and not having the other government agencies on the digital systems) represent a signi cant hindrance.”

On a positive note, Dr van Rensburg says single-window platforms, corridor trip monitoring systems and regional customs interconnectivity platforms are already showing promise. “The private sector has pushed for data-sharing rules, interoperability with existing enterprise resource planning and transport management system platforms, and digital customs clearance to become mandatory under AfCFTA frameworks. In practice, this means less paperwork, greater transparency, and faster cargo release, which are all critical for small and medium enterprises (SMEs).”

Hartzenberg says it has also long been recognised that soft infrastructure, including harmonisation of regulatory frameworks, is essential too, as this applies to all infrastructure. It is important to recall that the AfCFTA is not only a free trade agreement, but also a agship project of the African Union, along with other agship projects, including the Programme of Infrastructure Development for Africa. These projects are closely connected, and the success of AfCFTA is linked to the effective implementation of the others.

THE DOMESTIC CURRENCY DIFFERENCE

Complementing AfCFTA is the Pan-African Payment and Settlement System (PAPPS), developed by the African Export-Import Bank in collaboration with the AfCFTA Secretariat to simplify and speed up trade payments between African countries.

PAPPS is designed to handle payment and settlement in real-time, in domestic currencies, says Hartzenberg. “It requires central banks and the commercial banks of buyers and sellers to be in the system to facilitate payment and settlement, so it may take some time to be fully operational. There are, of course, important regional initiatives, including the

Southern African Development Community real-time gross settlement system, a regional interbank settlement system settling payments in South African rands.”

Hartzenberg says PAPSS could play an important role in supporting SMEs across the continent, reducing transaction costs and time. “Large enterprises may continue to work through the nancial institutions as they do now, denominating transactions in global currencies, since they are also likely to trade globally and need forex for those transactions.”

As of August this year, PAPPS was active across more than 150 commercial banks in 18 countries. CEO Mike Ogbalu expects this gure to grow to 30 by the end of the year, covering 500 million bank accounts.

IMPACT ON SOUTH AFRICA

AfCFTA IS A TRADE AGREEMENT THAT CREATES THE WORLD’S LARGEST FREE TRADE AREA BY NUMBER OF PARTICIPATING COUNTRIES, INCLUDING ALL AFRICA’S 55 NATIONS EXCEPT ERITREA, THUS FAR. AS THE ECONOMIC POWERHOUSE OF

As the economic powerhouse of the continent, South Africa is expected to be one of the rst-round bene ciaries of AfCFTA. Hartzenberg says evidence of this can be seen in the number of AfCFTA certi cates of origin issued so far.

“South Africa’s diversi ed economic structure and export reach, especially across Southern Africa, are already well established, as it has bene tted from the Southern African Customs Union and SADC free trade areas,” elaborates Hartzenberg. “South Africa’s trade footprint includes not only agricultural and industrial products, but also services. South African enterprises in a range of services sectors, including nancial services, communication, professional, transport, construction and mining services, have for many years already been actively engaged in African markets, not only through the cross-border supply of services, but also the establishment of commercial presence and the temporary presence of services suppliers.”

UNIFYING AIR TRANSPORT

The Single African Air Transport Market was introduced by the African Union (AU) in 2018 to create a unified African air transport market. To date, 38 out of 55 AU states have signed up, but unfortunately, protectionist policies have made enforcement difficult, while regional co-operation has often been trumped by national interests.

Source: Kenya Association of Air Operators

Hartzenberg adds that South Africa’s wholesale, retail and franchising distribution services, and transport and logistics have been important in providing conduits for consumer goods and agricultural products to reach consumers in other African markets. “It is important to note, however, that other countries are now actively reaching new market opportunities across the continent. Notably, countries in the North African region, including Morocco, Tunisia, Egypt and others, have joined regional economic communities, including the Common Market for Eastern and Southern Africa and the Economic Community of West African States, and are not competing with producers in the Sub-Saharan region.”

Dr van Rensburg believes South African freight forwarders are aware of the opportunities presented by AfCFTA and are, in many respects, ready, although several gaps nevertheless remain. “In terms of expertise, operators must become conversant with the new regulatory frameworks, digital systems and services trade negotiations. There are capacity issues too, with SMEs in particular (which do more than eighty per cent of trade in Africa) struggling to comply with certi cation and sustainability requirements without phased timelines and nancial support. Finally, regarding the policy environment, liberalisation must be matched with binding schedules and safeguards to avoid a rollback of commitments.”

Follow: Dr Jacob van Rensburg www.linkedin.com/in/jacob-van-rensburg-420912119

Trudi Hartzenberg www.linkedin.com/in/trudi-hartzenberg-6b306812

THE HIDDEN COST OF PORT CONGESTION

AFRICA GLOBAL LOGISTICS explains why Africa’s supply chain bottleneck isn’t where you think it is

There’s a myth in African logistics that port congestion is primarily a berth problem. Ships anchor at the port limits, and the nger-pointing begins. However, terminal operations experience across the continent reveals a far more subtle and costly reality.

The visible delays at the quayside are symptoms. The actual challenge lies in how ports are designed, operated and integrated into the broader supply chain ecosystem.

THE REAL BOTTLENECK

Consider what happens when a container ship arrives at a busy African port. The berth might be available. The cranes might be functioning. Yet the container spends four, ve and sometimes six extra days moving through the terminal. Why? Because the real bottleneck isn’t vessel reception; it’s the co-ordination between that berth, the storage capacity, the yard management system and the outbound transport infrastructure.

Most operators measure terminal performance metrics: referring to containers, ship working hours, ship turnaround times, on-time berthing of the vessel, gross crane hours, truck turnaround times and container dwell times all play a part. A terminal can move cargo quickly and still create chaos downstream. Poor yard planning means containers pile up in the wrong container stacks. Inadequate storage capacity forces suboptimal stacking. Unreliable handoff procedures delay truckers and rail operators waiting outside the gate. Each friction point adds costs: to the port operator and, exponentially, to every shipper in the system and the economy.

This reality can play out at any port: a major shipping line frustrated with turnaround times threatens to divert to another port. The port’s management blames congestion. Investigations could reveal something different: a terminal’s operating system isn’t integrated with its yard management software. Container locations are being logged manually, and truckers arriving to collect containers often have to wait hours while staff manually search the yard. The shipping line isn’t suffering from berth delays

PORT

INFRASTRUCTURE DESIGN,

OPERATION AND INTEGRATION INTO THE BROADER LOGISTICS ECOSYSTEM NEED A RETHINK.

but from operational invisibility. The costs to this shipper could run into hundreds of thousands of dollars annually in extended demurrage, storage and haulage fees.

Modern port operations demand more than throughput; they demand systems thinking. Integration, visibility and predictability matter.

PRACTICAL SOLUTIONS: INTEGRATION IN ACTION

At Africa Global Logistics (AGL), this philosophy is being translated into concrete operations across Africa’s port infrastructure. When AGL assumed operations at A-Berth, Duncan Docks in Cape Town earlier this year, it had the opportunity to demonstrate what integrated terminal management looks like in practice. Working alongside Transnet National Ports Authority, FPT Group, and AGL with partner BALSA implemented a model prioritising operational co-ordination and system reliability.

Rather than viewing each function as discrete, operations were designed around the entire journey: from vessel arrival through to container collection. NAVIS Terminal Operating Systems (TOS) create real-time visibility across all operations. Modern handling equipment moves cargo faster and more reliably and predictably, resulting in improved cargo-handling ef ciency, reduced turnaround times and a seamless, modernised experience for port users. TOS gives customers full visibility of operations along the import and export value chains. Business partners have web-based access for pre-advice of containers to TOS to ensure ef cient operations. This approach extends across AGL’s port concession portfolio.

Perhaps most signi cantly, AGL is pioneering green terminal operations that integrate environmental sustainability into operational excellence. Sustainable terminal design –optimised energy consumption, reduced emissions and waste minimisation – improves ef ciency. Greener operations are leaner operations, requiring better systems integration, smarter work ow design and closer co-ordination with customers.

THE PATH FORWARD

Many African ports still operate in silos. Maritime operations, storage and outbound logistics are managed as separate functions rather than integrated processes. This is expensive: a shipper importing goods through an inef cient port doesn’t just pay higher port charges; they carry additional inventory buffer to compensate for unpredictable delivery windows, maintain larger storage facilities and employ more staff to manage uncertainty. These hidden costs often dwarf the port fees.

The path forward requires a fundamental reframing. Performance metrics should encompass the entire value chain: predictability, system integration, real-time visibility and total cost of ownership, not just tonnes moved.

The continent’s economic transformation depends on supply chains that move cargo reliably, predictably, sustainably and affordably. Port infrastructure design, operation and integration into the broader logistics ecosystem need a rethink.

Follow: Africa Global Logistics www.linkedin.com/company/africagloballogistics

SHAPING LOGISTICS, DRIVING TRADE AND POWERING INNOVATION

STANDARD BANK FLEET MANAGEMENT

reflects on the evolving role of fleet management

In a world where logistics underpins every trade ow and economic interaction, the discipline of eet management has become more than just a back-of ce function. It is now a core driver of ef ciency, innovation and competitiveness across industries.

Justin Thomas , executive head Standard Bank eet management, and a leading voice in eet and mobility solutions, frames eet management not as a “market”, but as a discipline of cost and risk management. “When people hear ‘ eet management,’ they often think only of telematics,” he explains. “However, in reality, it is a discipline made up of multiple services – fuel and eet cards, consulting, payment providers and technology platforms – all working together to reduce costs, manage risks and unlock value for businesses.”

SMALL AND MEDIUM ENTERPRISES ENTER THE EQUATION

Traditionally, eet managers were dedicated professionals inside large corporations with hundreds of vehicles. However, in today’s landscape, the picture is more nuanced. “For large eets, the discipline is entrenched,” Thomas notes. “But, in small and medium enterprises (SMEs), you don’t often nd a dedicated eet manager. Instead, the responsibility sits with HR managers, of ce managers or even nance leads – essentially hybrid roles where eet management becomes another part of the daily job.”

This shift reveals both a challenge and an opportunity: awareness. Many SMEs aren’t fully conscious of what they should be monitoring – fuel usage patterns, risk exposure and expense leakages –yet these factors directly impact margins. The opportunity lies in equipping these businesses with accessible, technology-driven solutions that help them manage eets with the same discipline as large corporates.

THE COST AND RISK IMPERATIVE

At its heart, eet management is a balancing act between cost control and risk mitigation. Whether it’s controlling spend on fuel, ensuring compliance with regulations or monitoring driver behaviour, the function directly in uences pro tability. “Fleet management isn’t glamorous, but it’s critical,” Thomas remarks. “It’s about making sure businesses don’t lose money where they shouldn’t, while ensuring safety and compliance. Done right, it can be transformative.”

INNOVATION AS A GROWTH ENGINE

With trade and logistics becoming increasingly digitised, innovation is powering the next phase of growth. Digital eet cards, real-time analytics and integrated payment platforms are reshaping how businesses track, manage and optimise mobility. These tools not only improve oversight, but also generate the data that enables smarter,

Follow: Justin Thomas www.linkedin.com/in/justin-thomas78

“BUSINESSES DON’T NEED MORE DASHBOARDS. THEY NEED INSIGHTS THAT MAKE THEIR LIVES EASIER – WHETHER THAT’S REDUCING FRAUD, IMPROVING CASH FLOW OR STREAMLINING COMPLIANCE.”

– JUSTIN THOMAS

faster decision-making. For Thomas, this evolution is less about technology for its own sake and more about practical value creation. “Businesses don’t need more dashboards. They need insights that make their lives easier – whether that’s reducing fraud, improving cash ow or streamlining compliance,” he emphasises.

A DISCIPLINE THAT SHAPES TRADE

As Africa’s economies grow and regional trade accelerates, eet management will play an outsized role in shaping competitiveness. By professionalising how vehicles, drivers and expenses are managed, companies can unlock ef ciencies that ripple across supply chains – powering trade, lowering costs and driving innovation. The discipline is no longer hidden in the background. It is becoming a strategic lever that determines whether businesses simply move goods or move ahead.

SMART FLEET MANAGEMENT, THE STANDARD BANK WAY

Managing a fleet is easier with a STANDARD BANK FLEET CARD

In today’s high-pressure operating environment, managing a eet is no longer just about fuel and mileage; it is about data, control and nancial discipline.

Standard Bank’s Fleet Card offers many bene ts and facilitates seamless operation.

SECURE PAYMENTS, SMARTER SAVINGS

The Standard Bank Fleet Card brings these priorities together through a secure, intelligent and future-ready payment solution that helps businesses of all sizes manage mobility spend with con dence.

The Standard Bank Fleet Card combines robust chip-and-PIN technology with real-time transaction monitoring to reduce fraud and unauthorised spending. Integrated rules engines prevent over lls, duplicate transactions and out-of-pattern usage, ensuring that every litre purchased is fully accountable.

Through the Fleet360 platform, each cardholder’s transactions are visible instantly, giving businesses live oversight of consumption, cost per kilometre and route-level behaviour. For smaller businesses without a dedicated eet manager, this visibility provides the kind of governance and insight once reserved for large corporates.

Beyond security and reporting, the Standard Bank Fleet Card is engineered for savings. Standard Bank’s negotiated alliances with leading fuel suppliers translate into substantial per-litre discounts. Across its customer base, these collective savings exceed R1-million daily.

The card also supports evolving energy needs: partnerships with charging-network providers are extending its acceptance to electric-vehicle infrastructure, ensuring continued relevance as eets transition to alternative power.

By integrating nancial, operational and technological capabilities, FML enables businesses to focus on their core purpose while Standard Bank manages the machinery that moves it forward. It is a complete mobility solution. One that transforms eet ownership from a burden into a strategic advantage.

THE STANDARD BANK FLEET CARD COMBINES ROBUST CHIP-AND-PIN

TECHNOLOGY WITH REAL-TIME TRANSACTION MONITORING TO REDUCE FRAUD AND UNAUTHORISED SPENDING.

FULL MAINTENANCE LEASING: A HOLISTIC APPROACH TO FLEET MOBILITY

Fleet ownership can be one of a company’s largest xed costs – second only to payroll – yet vehicles themselves rarely represent a core business capability. Standard Bank’s Full Maintenance Leasing (FML) model reimagines eet management as a service, enabling organisations to outsource complexity while retaining complete operational control.

Under this structure, Standard Bank assumes responsibility for the vehicle throughout its life cycle, from procurement and licensing to insurance, tyres, maintenance, roadside assistance and eventual disposal. Businesses lease the vehicles they need on xed terms and predictable costs, freeing up capital and management time for growth activities.

The bank’s national buying power delivers immediate savings at the point of acquisition, while its total-cost-of-ownership analytics optimise running expenses across fuel, parts and service intervals. Fleet360 technology provides a uni ed view of usage, spend and compliance, turning every data point into a decision tool.

Flexibility is built in: vehicles can be replaced or upgraded at contract maturity, ensuring eets remain modern, ef cient and aligned with business requirements. For

specialised sectors, such as refrigerated transport or last-mile delivery, custom con gurations, solar-powered units and alternative-energy options are available.

By integrating nancial, operational and technological capabilities, FML allows businesses to focus on their core purpose while Standard Bank manages the machinery that moves it forward. It is a complete mobility solution. One that transforms eet ownership from a burden into a strategic advantage.

MANAGED MAINTENANCE: TURNING DATA INTO SAVINGS

Maintenance costs often represent the hidden drain in eet operations. Standard Bank’s Managed Maintenance solution transforms that challenge into an opportunity for measurable ef ciency through data-driven oversight, supplier optimisation and proactive risk management.

Processing more than R1.4-billion in repair transactions annually across a 40 000-vehicle portfolio, the programme identi es and eliminates unnecessary spend before it occurs. Fleet360 technology consolidates every repair, part and supplier invoice into a single digital environment, allowing clients to benchmark real costs against target cents-per-kilometre performance.

The results are tangible. Continuous monitoring and negotiated supplier rates

FLEET360 TECHNOLOGY CONSOLIDATES EVERY REPAIR, PART AND SUPPLIER INVOICE INTO A SINGLE DIGITAL ENVIRONMENT, ALLOWING CLIENTS TO BENCHMARK REAL COSTS AGAINST TARGET CENTS-PER-KILOMETRE PERFORMANCE.

generate annual client savings estimated between R250-million and R300-million. Predictive analytics highlight early warning signs, such as excessive idling or component wear, so maintenance schedules can be adjusted to prevent costly breakdowns. In one national eet, optimised service intervals reduced engine failures and saved millions of rand in a single year.

Managed Maintenance also integrates essential support services, including licence renewals, nes administration and 24-hour roadside assistance. These add-ons reduce administrative load while ensuring compliance and driver safety.

For smaller organisations without dedicated eet teams, the service introduces professional eet discipline through an accessible, automated platform. For corporates, it delivers scale, transparency and measurable returns. By aligning engineering insight, nancial control and digital intelligence, Standard Bank’s Managed Maintenance converts maintenance from a reactive cost centre into a strategic lever of performance and pro tability.

CLOSING THE LAST MILE

Township logistics and the future of urban delivery

E-commerce growth has boosted South Africa’s last-mile delivery industry –and this upward trajectory is set to continue, writes

LISA WITEPSKI

The sudden proliferation of smart lockers – now situated in almost every mall – is testimony to the growing demand for last-mile courier service.

According to Parcel and Postal Technology International, there are now more than 1 200 of these lockers throughout the country, with increasing numbers driven by the mushrooming popularity of retailers like Shein, Temu and Yaga.

Ryan Gaines, CEO of City Logistics, which handles last-mile deliveries through its sister company, Fastway Couriers, says an interesting dynamic is at play in the industry. “Our work with e-commerce platforms is de nitely on the up. For example, TFG has experienced a forty- ve per cent increase through its online arm, Bash. However, there’s been a general slowdown in terms of the volume of deliveries to traditional brick-and-mortar shops, correlating with uctuations in the rand’s value.”

Gaines adds that South Africa’s industry is not alone in being forced to keep up with the evolution in e-commerce, but the country has had to grapple with many unique challenges. For example, until around ve years ago, the industry was geared primarily

Fast fact

South Africa’s last-mile delivery market is projected to generate revenue of around R58-billion by 2030.

Source: Grand View Research .

for business-to-business deliveries, but now there is a growing small and medium enterprise presence in the market.

WHAT IS LAST-MILE DELIVERY?

Last-mile delivery is the very last step in the supply chain process. Before this, an item would have been moved from the manufacturer to a warehouse. This “first mile” is followed by the final milestone: ensuring the item is delivered into the hands of the customer from the warehouse.

Although this sounds simple, this stage is where errors are most likely to occur: parcels and packages may be damaged or poor infrastructure may impact delivery times – particularly concerning given growing customer expectations for same-day delivery. In South Africa especially, the last mile may be challenging because of poor road conditions or the accessibility of rural areas and townships.

Source: Merchants Fleet

CREATING OPPORTUNITY

Linked to this is the new emphasis on previously underserviced areas, which brings about new opportunities. For instance, several entrepreneurs have moved to ll the gap left by courier companies that do not have the resources required to overcome the challenges associated with delivery in townships. As smart logistics operator Pargo notes, these are multifaceted and include “insuf cient mapping for navigation, crime concerns and unreliable geolocation apps”. Pargo has addressed this by introducing Pickup Points, which negate the need for home delivery. Thanks to these centres, the company has been able to service communities in Soweto, Umlazi and Khayelitsha.

City Logistics’ answer has been to create a franchise model, where couriers are recruited to serve the communities in which they live. “This creates community buy-in: people are more likely to support them, while they have an insider’s knowledge of the area,” says Gaines. In this way, the industry is also serving as a catalyst for job creation. Last-mile delivery provider Green Riders states that its strategy is “to recruit unemployed, underprivileged youths (both men and women) and train them, in the areas in which they live, to become professional delivery riders”. The company, which uses e-bikes and e-motorbikes because they are cheaper for riders to operate, has created the Green Riders Academy to help it achieve this goal. By November 2024, the company had created 2 025 jobs.

Meanwhile, in 2024, the Takealot Group announced its intention to recruit 1 000 last-mile delivery drivers to scale its reach into townships.

Gaines predicts that, with their signi cant densities, these underserviced areas will continue to provide the most signi cant areas for the industry’s growth going forward. However, all players should expect stiff competition in the future as giants like Amazon and Takealot up the ante in terms of service.

Follow: Ryan Gaines www.linkedin.com/in/ryan-gaines-5370b217

Ryan Gaines

SIX DECADES OF DRIVING EXCELLENCE

Since its modest beginnings in 1956 “Old Faithful,” a single truck that carried the company’s rst loads, Cargo Carriers has grown into a trusted and specialised logistics partner serving multiple industries across the region.

Founded by visionary entrepreneur Des Bolton, the business was built on four enduring values: tenacity, integrity, competence and innovation. These principles remain central to its operations today, underpinning every decision and every delivery.

INNOVATION IN A DEMANDING INDUSTRY

The transport and logistics sector is competitive, high-risk and asset-intensive. Success requires reliability, safety and constant innovation – qualities that have de ned Cargo Carriers for over six decades. From its early work servicing the Free State gold elds to today’s operations –transporting hazardous chemicals, fuels, steel, cementitious products and agriculture, namely, sugar – Cargo Carriers ensures ef ciency, reduced risk and added value for its clients.

STRATEGIC GROWTH AND SPECIALISATION

Expansion has always been a hallmark of Cargo Carriers, and growth has continued throughout Southern Africa, supported by the company’s ability to diversify into new sectors. Today, Cargo Carriers operates through two focused business entities:

• Cargo Trucking – road freight logistics.

• Cargo Carriers Supply Chain Solutions –warehousing, distribution and supply chain optimisation.

From a single truck to one of Southern Africa’s most respected and specialised logistics partners, CARGO CARRIERS handles and moves goods across the region reliably and safely

Within its trucking division, three industry verticals deliver customised services:

• Chemicals, steel and mining.

• Fuel and powders.

• Agriculture, namely, sugar.

This structure ensures deep technical expertise and sector-speci c solutions. Many clients have partnered with Cargo Carriers for more than 48-plus years, a powerful testament to its reliability and long-term commitment.

PIONEERS IN SAFETY AND COMPLIANCE

For more than three decades, Cargo Carriers has been a leader in the transportation of hazardous chemicals. As a founding signatory to the Responsible Care Programme of the Chemical and Allied Industries Association, the company has set the benchmark for the safe handling and movement of dangerous goods across Southern Africa. Its operations are guided by rigorous compliance standards, including DEKRA accreditation, OHSAS 45001 certi cation and regular external and internal audits. These frameworks ensure not only operational excellence, but also the protection of employees, clients and surrounding communities.

AWARD-WINNING INNOVATION

Cargo Carriers’ pursuit of operational optimisation and supply chain innovation has been recognised with multiple Logistics Achiever Awards, including:

• Gold Logistics Achiever Award

• Platinum Award – transformation in the sugar industry,

• Gold Award – supply chain innovation in the apparel industry.

• Gold and Silver Awards – supply chain optimisation and innovation. These accolades con rm the company’s ability to combine strategic insight with practical execution, consistently unlocking value for its clients.

TECHNOLOGY, PEOPLE AND PURPOSE

Cargo Carriers has always been a pioneer in applying technology to logistics. From installing its rst computing systems in the 1980s to deploying today’s intelligent telematics, the company has continually evolved to deliver full supply chain visibility and enhanced internal ef ciency.

At the same time, its people remain central to success. Cargo Carriers invests heavily in driver training, skills development and regular health screenings, ensuring a capable and safe workforce.

A LASTING LEGACY

After more than six decades, Cargo Carriers remains steadfast in its values – tenacity, integrity, competence, innovation and accountability. These principles are not abstract ideals, but practical commitments re ected in the company’s culture, day-to-day operations and enduring client partnerships. Looking ahead, the company’s vision is clear: “To be recognised as the preferred partner in supply chain and logistics solutions and to be rated as the leader in our selected specialised markets.”

FUTURE-PROOFING

SOUTH AFRICA’S SUPPLY CHAINS

South Africa’s supply chains have faced unprecedented pressure – from port congestion and ageing rail infrastructure to power outages and rising security risks. Yet strategic shifts are steadily shaping a more resilient logistics sector.

By VANESSA ROGERS

South Africa’s transport and logistics industry remains a cornerstone of the national economy. In 2025, Eulerpool Research Systems valued gross domestic product from transport alone at R377.3-billion, underscoring its central role in trade and economic activity. The sector spans over 750 000km of roads, about 30 400km of rail, 90 licensed airports and maritime transport that moves 96 per cent of export volumes (Source: news.nwu.ac.za)

Yet, despite its scale and importance, port congestion, rail inef ciencies, power outages and mounting security risks are driving up costs, delaying deliveries and eroding reliability.

PORT AND RAIL DISRUPTIONS

South Africa’s ports remain under severe strain. In June 2025, port delays surged by up to 300 per cent compared to pre-pandemic levels, with Cape Town ranking among the hardest-hit global hubs, according to Tradlinks. The congestion has led to extended vessel waiting times, delayed cargo deliveries and ripple effects across industries dependent on just-in-time logistics.

At the same time, rail infrastructure faces persistent challenges. Reuters reports that maintenance backlogs, equipment theft and ageing assets continue to hamper the network. Freight volumes rose from 152 million tonnes in 2023 to 160 million tonnes in 2024, but remain below the 170 million tonnes target. Modest improvements are expected in 2025 as recovery measures take effect.

To ease pressure, the government licensed 11 private operators in 2025 to manage 41 rail lines and 6 logistics corridors.

Despite these interventions, many mining and industrial producers are turning to road transport to bypass rail bottlenecks. This shift drives up costs, worsens congestion and highlights the urgent need for long-term infrastructure investment and strategic planning.

POWER OUTAGES AND SECURITY RISKS

While load shedding has eased for households, rolling blackouts continue to disrupt production, cold chains and transport operations. These power cuts, combined with rising cargo theft, truck hijackings and port vandalism, are driving instability and forcing operators to adjust routes and schedules –often at signi cant cost.

The scale of the problem is stark. In 2023, the Transported Asset Protection Association recorded 41 120 cargo crimes across 36 African countries, with 99 per cent occurring in South Africa. These ranged from truck hijackings to warehouse thefts, costing businesses billions in losses.

BUILDING RESILIENCE IN THE SECTOR

Paul Vos, regional managing director of the Chartered Institute of Procurement & Supply (CIPS Southern Africa), says: “South Africa’s supply chains have endured some of the toughest tests in living memory – from port congestion and rail breakdowns to power cuts and security risks. At CIPS, our view is clear: we cannot future-proof against every disruption, but we can build future- t supply chains that are visible, adaptable, inclusive and people-driven.”

Key strategies to achieve this include:

1. Strategic risk management: map the entire network to identify vulnerabilities.

2. Digital visibility: use real-time tracking, predictive analytics and scenario modelling to anticipate risks.

3. Adaptability over efficiency: replace rigid, lowest-cost models with agile systems that allow rerouting, exible contracts and regional trade options.

4. Inclusive partnerships: collaborate with diverse suppliers while aligning

Follow: Paul Vos www.linkedin.com/in/pauljvos Frans Prinsloo www.linkedin.com/in/frans-prinsloo

“RESILIENT SUPPLY CHAINS ARE BUILT BY PEOPLE AS MUCH AS BY SYSTEMS.” – PAUL VOS

environmental, social and governance and broad-based black economic empowerment objectives.

5. Investing in people: equip staff with the skills and agility to make informed decisions under pressure.

“Resilient supply chains are built by people as much as by systems,” Vos adds.

INSURANCE AND RISK MITIGATION

Frans Prinsloo, head of business development and innovation at Lombard Insurance, stresses the importance of insurance in supporting resilience. High-crime areas, extreme weather events and transport incidents have pushed insurers to adapt coverage terms for high-risk commodities.

“By combining strategic risk management with digital visibility and strong insurance partnerships, transport operators can safeguard operations and reduce nancial losses,” Prinsloo explains.

He points to innovative rms such as Route Management Services and AgrigateOne that use real-time data to prevent losses and offer operational foresight. “Data-driven solutions give operators and insurers the insights needed to anticipate risks rather than simply respond to them. By investing in these tools and collaborating closely with clients, insurers can help build supply chains that are not only protected, but also positioned to thrive despite disruption.”

HARD TO PORT

New cranes at Cape Town Container Terminal are helping to boost productivity, but more than just equipment is needed, writes

South Africa’s ports have been in a state of decline for some time, with Cape Town being no exception. This is bad news for agricultural exports, with bottlenecks and delays costing the apple and pear industry alone R1-billion a year, according to Tru-Cape.

However, progress has been made with the launch of 9 of 28 new rubber-tyred gantry cranes with 3D cameras for precision hybrid engines and anti-sway systems enabling them to operate in winds of up to 90km/h. The cranes were acquired as part of a R3.4-billion investment programme in turning the port around, which is crucial to unlock the port’s full capacity, says Dr Juanita Maree, CEO of the South African Association of Freight Forwarders. “Equipment upgrades matter because productivity is closely tied to the alignment of physical assets with terminal design. Although Cape Town Container Terminal (CTCT) was designed to handle 1.4 million twenty-foot equivalent units (TEUs) annually, infrastructure limitations have reduced its capacity to around 1 million.”

Encouragingly, however, Dr Maree says that this investment, combined with changes, such as the introduction of a fourth shift and incentive-based performance monitoring, is beginning to yield measurable results. “Since mid-July, Cape Town Container

ANTHONY SHARPE

Terminal (CTCT) has averaged two thousand three hundred and three TEUs per day – well above the target of one thousand nine hundred and sixty-two and markedly higher than last year’s average of one thousand eight hundred and fty-nine. Export volumes overall are up twenty-four per cent year-on-year, while refrigerated container volumes have grown by thirty-two per cent.”

Theo Pappas, director of investments for Africa at APM Terminals, which forms part of Maersk’s transport and logistics division, says the shipping giant is pleased to see the new equipment in action. “The timing of this roll-out – following the peak reefer season – is ideal, providing operators with a valuable window to familiarise themselves with the machinery ahead of the upcoming grape season.”

BEYOND HARD INFRASTRUCTURE

While new equipment like the cranes is vital to reinvigorating the port, Dr Maree says that looking at international best practice across ports in the Netherlands, Germany and Thailand, it’s clear that equipment alone is not enough. “Soft infrastructure such as platforms and collaborative governance are equally important.

Cape Town ultimately requires a Port Community Platform that unites stakeholders on a single digital interface for real-time data, planning and transparency.”

Equally important, says Dr Maree, is stakeholder trust and collaboration. “Transnet has already acknowledged the value of customer partnerships. Extending this ethos into a structured governance framework would amplify the bene ts of infrastructure upgrades.”

Pappas says Maersk is encouraged by the announcement of a 10-year strategic partnership between Transnet Port Terminals (TPT) and materials handling equipment provider Liebherr. “This long-term collaboration signals a strong realisation of the need to ensure continued maintenance of the new equipment and, therewith, a commitment to operational excellence and sustainable productivity improvements towards international standards.”

TRIMMING THE EDGES

Beyond equipment and digital platforms, bottlenecks at the “edges” of the system need to be dealt with, says Dr Maree. “On the landside, back-ofport facilities such as the Bellville Container Terminal have proven instrumental in acting as a release valve for congestion. The integration of Transnet Freight Rail movements between this terminal and CTCT has eased yard pressure and allowed for smoother stack planning.” She adds that decongesting the port precinct, optimising yard ows and ensuring increased crane capacity translates into higher throughput, all hinge on scaling up these facilities.

“On the waterside, improvements in vessel ows in and out of port limits are equally important,” adds Dr Maree. “The collaboration between Transnet National Ports Authority and TPT in managing arrivals and departures has already yielded ef ciencies, enabling ships to begin operations more quickly once alongside.”

www.linkedin.com/in/juanita-maree

www.linkedin.com/in/theo-pappas-57654964

SOUTH AFRICA’S RAIL REFORM: EN ROUTE TO IMPLEMENTATION

VIVEN CHAPLIN, director – Corporate and Commercial, and HAAFIZAH KHOTA, senior associate – Corporate and Commercial, at Cliffe Dekker Hofmeyr, write that South Africa’s rail sector has turned a corner with early signs of recovery noted

South Africa’s rail sector is moving from diagnosis to delivery. The challenges are well documented: a shortage of operational trains, ageing infrastructure, widespread theft and vandalism and operational inef ciencies, creating bottlenecks that spill into port. Shifting trade routes, geopolitical instability and environmental concerns add further complexity.

Yet opportunities are emerging as the African Continental Free Trade Area takes effect. The United Nations’ Economic Commission for Africa projects about a 50 per cent increase in intra-African transport demand and a 28 per cent rise in freight demand by 2030, making ef cient movement of people and cargo across the continent critical for economic growth.

RAIL ON THE MOVE

In contrast to last year’s audit of constraints, signi cant progress can be reported this Transport Month. The rail network is at the centre of reform. With evolving policy, active industry involvement and increased access to capital, the focus now is on disciplined execution that delivers reliable passenger and cargo services.

The policy direction was set in 2020 under the Economic Reconstruction and Recovery Plan, when government committed to enabling third-party access to the core rail network. The National Rail Policy, followed in 2022 and mapped out the priorities, including the creation of a national Rail Planning Function, tasked to develop an integrated Rail Master

Plan, promotion of third-party access through a Private Sector Participation (PSP) framework, independent economic regulation of rail access and a shift of passenger demand from road to rail.

Further momentum came with South Africa’s signature to the Luxembourg Rail Protocol in March 2022 (subsequently rati ed in January 2025 and effective from May 2025), pending domestication. The protocol supplements the Cape Town Convention by creating a global registry for security interests in railway rolling stock and strengthening cross-border creditor and lessor rights. Practically, it reduces legal uncertainty and is a nancing enabler for the PSP pipeline.

By August 2025, concept turned to allocation as 11 of 25 applicants quali ed for slots across 41 routes. The remaining intention is to augment, not displace, Transnet’s haulage. Around the same time, the Export Credit Insurance Corporation of South Africa announced that once the Luxembourg Rail Protocol is in force in the debtor’s state, it will discount its risk premium by up to 20 per cent for rolling stock nance. While subject to South African content and compliance requirements, it will make nancing for rail more attractive for all PSP participants.

Policy advanced again in December 2024 with the enactment of the Economic Regulation of Transport Act (ERT Act). In a phased commencement, effective from April 2025, the ERT Act establishes a single Transport Economic Regulator, responsible for fair, nondiscriminatory access and pricing across rail, ports, roads and airports. In parallel, Transnet’s infrastructure manager released the nal Network Statement, outlining the operating rules and tariff methodology underpinning open access to the rail network.

Planning moved to market engagement in March 2025 when the Department of Transport issued a Request for Information to test the appetite for PSP across rail and port projects. The process closed with 162 formal submissions, a strong signal of investor interest.

Early signs of recovery are evident. Transnet reported a 10.7 per cent increase in port container handling and modest improvements in rail reliability by mid-2025. On the passenger side, PRASA is restoring priority corridors, improving safety and rebuilding reliability. About 35 of 40 corridors are back in service to some degree, including Cape Town’s Central Line and further engagement for PSP participation is also expected.

In summary, South Africa’s rail sector has turned a corner. The critical challenge now is disciplined execution – turning plans into contracts and contracts into continuous improvement so rail shifts from constraint to a catalyst for growth.

RAIL WELCOMES PRIVATE SECTOR STIMULUS

Minister of Transport Barbara Creecy announced in August the selection of 11 private train operators that will boost rail volumes, attract private investment and enhance economic growth in South Africa. Here’s what to take in about the translation of this policy into practice.

By VANESSA ROGERS

At the 14th SARA International Rail Conference and Exhibition, held at Sandton Convention Centre between 26 and 29 August, Minister of Transport Barbara Creecy made a few de ning points on the importance of rail transportation in South Africa.

Firstly, she said that for generations, the railways have been arteries of trade and mobility: “connecting mines to ports, farms to markets, and people to opportunities”.

She said Africa is experiencing “unprecedented trade disruptions, population growth and rapid urbanisation, so we stand at a de ning moment. The choices we make now will determine whether rail becomes the driving force behind integration and prosperity.”

Creecy added that the new train operating companies (TOCs) will carry “Twenty million tonnes of freight per annum from the 2026/27 nancial year”, to supplement

Transnet Freight Rail’s forecasted volumes and contribute to the target of “increasing freight moved by rail to two hundred and fty million tonnes per annum by 2029”.

“This is a signi cant step in our rail reform journey and makes open access to freight rail a decided reality in our country,” Creecy explained. “It will contribute to a more ef cient, reliable and sustainable rail system in promotion of inclusive growth, job retention and creation.”

PRIVATE-PUBLIC PARTNERSHIP FOR THE WIN

Picking up on Creecy’s trajectory, Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso says: “Last week marked an important step towards a competitive and thriving logistics system. Creecy’s allocation of rail slots to the new TOCs is the realisation of years of intense collaboration between business and government.”

“NOW WE NEED TANGIBLE INVESTMENT, THE TRAINS MOVING FORWARD AND THE TONNAGE INCREASING.” – BUSISIWE MAVUSO

Mavuso says when we speak of structural reform in logistics, “we mean creating a competitive environment that will drive ef ciency, investment and ultimately economic growth. This step is merely one taken along the National Logistics Crisis Committee (NLCC) journey.”

Her comment followed Minister of Finance Enoch Godongwana’s address to BLSA members on the importance of urgent structural reforms. “The only way for South Africa to respond to the headwinds we face from the global trade environment and geopolitics is to make our economy more ef cient and to allow for more growth,” Mavuso says.

South Africa’s logistics crisis, which has cost the economy over R100-billion in lost mining revenue alone, is now seeing a potential resolution in the form of an unprecedented partnership between business and government. “Through the NLCC, we have mobilised more than forty- ve private-sector experts and CEOs to work alongside government in delivering on the Freight Logistics Roadmap.”

WHY THE RAIL REFORM?

A crucial aspect of the Freight Logistics Roadmap involves stabilising and improving the performance of Transnet along existing corridors. Mavuso reports that in July, Kumba Iron Ore reported a four per cent increase in ore that it could move from its mines in the Northern Cape to the Saldanha Port via rail. “Equipment availability at the port has also improved, enabling Kumba to increase sales by three per cent.”

RAIL REFORM BY NUMBER

• 11: the number of new train operating companies that have been allocated rail slots on 41 routes to level the business-government rail operation playing field.

• 20 million: the volume of tonnes of cargo the new operators plan to move annually from 2026/2027.

• R100-billion: the rolling stock investment that should soon be unlocked towards the 2029 target of moving 250 million tonnes by rail.

Her stance is that introducing competition into the mix was never going to be easy. “Breaking up a monopoly requires political courage, regulatory sophistication and sustained commitment from all stakeholders. The fact that we now have eleven new entrants with impressive freight targets and the ability to participate in future funding is a testament to what can be achieved when we focus on solutions.”

GLOBAL STAKEHOLDERS HAVE THEIR EYES PEELED

Of course, this rail opening must be seen alongside the progress being made in port reforms and the work of Operation Vulindlela

Did you know?

Operation Vulindlela is a government initiative, established in October 2020, aimed at fast-tracking the implementation of high-impact structural economic reforms that stimulate economic growth and create jobs. The programme focuses on modernising network industries, such as electricity, water, transport and digital communications, as well as improving services to unlock economic potential and address long-standing constraints.

Source: www.thepresidency.gov.za/node/4892

in accelerating infrastructure improvements because the nation’s logistics system is nely interconnected.

“There is little point in moving goods ef ciently by rail if they then sit in port queues for weeks,” says Mavuso. “The reduced vessel waiting times at Durban Port, the improvements in crane productivity and the border ef ciency gains at Lebombo are all contributing towards a logistics ecosystem that can nally compete on a global scale.”

Rail reform, however, remains the cornerstone because of its capacity and cost advantages for bulk commodities. Success in this rst phase of rail reform, believes Mavuso, will determine whether South Africa can attract the next wave of private investment needed to modernise the country’s entire transport network. “International operators and nanciers are watching carefully. The targets are clear, the framework is established, and the operators have been selected.”

PROPOSED BUSINESS MODEL

While Finance Minister Enoch Godongwana’s target of moving 250 million tonnes by rail in 2029 is ambitious, Mavuso says it is achievable if we keep the momentum.

SOUTH AFRICA’S LOGISTICS CRISIS, WHICH HAS COST THE ECONOMY OVER R100-BILLION IN LOST MINING REVENUE ALONE, IS

NOW SEEING

“Compare this to Transnet’s current performance of around one hundred and sixty million tonnes, and you’ll see the transformative potential. Every tonne moved by rail rather than road reduces logistics costs, eases congestion on our highways, improves our environmental footprint and drives job creation.”

According to National Treasury, the new TOCs will operate via a business model that relies on a dynamic public-private partnership (PPP) to manage and improve public transport services, potentially increasing pro tability and allowing for signi cant innovation in both operations and service delivery. Such a partnership involves collaboration from a government body (representing public interest) with a private company (with expertise and capital) to deliver transport services, and investment, where the private company typically contributes new vehicles, infrastructure or the operation of existing systems.

“PPPs provide a viable strategy for nancing and managing infrastructure, as well as leveraging private sector investment, expertise and innovation. Successful PPPs are governed by strong frameworks, transparent contracts and fair risk-sharing arrangements”, reveal the authors of “Public-Private Partnership for Sustainable Infrastructure Development”, a paper published in the Journal of Lifestyle & SDGs Review Vol 5, No 5 (2025).

It goes without saying, then, that PPPs also form important mechanisms to align with the United Nations’ Sustainable Development Goals, and to contribute towards sustainability in key sectors such as energy, transportation and urban development.

“The beauty of this reform is that private operators will bring their own resources – expertise, equipment and, crucially, accountability to customers,” says Mavuso. She is encouraged by the transparent, merit-based evaluation achieved by the Interim Rail Economic Regulatory Capacity (IRERC), resulting in the rst round of allocations. “The modus operandi of the IRERC demonstrates the kind of institutional innovation we need across government at large.”

SETTING THE WHEELS IN MOTION

As announcing slot allocations is easier than operating trains, the real test now lies in implementation. “The conditional award letters requiring Railway Safety Regulator permits, rolling stock readiness and port

capacity arrangements are essential safeguards in a system that must work safely and ef ciently, but that needs to be swiftly delivered,” explains Mavuso.

Her stance is that reforms cannot stall the way they did in the concessioning of the Durban Container Port, with a preferred bidder being announced two years ago, who still cannot proceed because of court-related red tape.

The opening of ad-hoc applications for additional routes, followed by 2026/27 timetable applications, makes a point to all stakeholders: this is not a one-off exercise, but the beginning of a dynamic, responsive allocation system that will allow learning and improvement as it unfolds.

“Now we need tangible investment, the trains moving forward and the tonnage increasing,” says Mavuso. “Creecy’s announcement and all the connected developments represent the earned hope that comes from seeing policy translated into practice. After years of decline, South African rail is nally on track for recovery.”

IT ALL RESTS ON INVESTMENT

Speaking to Railways Africa was James Holley, CEO of Traxtion, a company that opted not to apply for rail access slots in this initial round. Traxtion’s eet of 60 locomotives is already fully deployed across nine African countries under long-term contracts.

“If you do not have available trains for deployment, you need to raise funding to the tune of between R250-million and R1.2-billion per train set. We think a few improvements are needed rst to the Rail Access Agreement under the Network Statement,” advises Holley. “Do we intend to invest? Yes. Do we intend to invest for South Africa? Absolutely. Are we preparing to invest? Yes, we are signi cantly advanced in raising funding – and a signi cant amount of it – for South Africa. We hope to make announcements about this soon.”

Did you know?

Before the recent transportation reforms were implemented, South African port delays varied significantly, ranging between two and eight days on average, with some incidents where adverse weather, equipment shortages and infrastructure issues were at play, particularly at Durban harbour, reaching 20 days or more.

Source: https://turnersshipping.co.za/ south-africas-major-ports-2025-waiting-timesupgrades-and-outlook

welcomed the recent announcement. However, he cautions that few rail operators have suf cient experience in Africa. “There is a huge amount of bene t we can bring to the local rail industry as more players enter the market. We can add value in train operations and maintenance services, and through our training school.”

Holley says that when reform comes, companies need to respond with investment. “It is the most important thing. Policy reform must translate into investment. Without investment, none of it matters. The conditional awards are conditional on investment, which is crucial for the country’s next phase of growth.”

James Holley

Holley is excited about the potential Traxtion can bring to the market before the end of the year. “There is still some work to do before we can close this out, but I believe that before year end, we will be announcing some exciting developments for the future of South Africa’s railways, the future of regional railways, and the next phase of exponential growth that is nearly upon us.”

READ

Holley emphasises that South Africa is moving in the right direction and has

Minister of Transport’s keynote address to the 14th SARA International Rail Conference and Exhibition

Follow: Busisiwe Mavuso www.linkedin.com/in/busisiwe-mavuso-bcompt-fcca-mbl-mphil-7593a154

James Holley www.linkedin.com/in/james-holley-za

Driving a healthier planet

Through a fleet of electric vehicles with solar-powered refrigeration and an expanded owner-driver programme, United Pharmaceutical Distributors is transforming pharma logistics – one delivery at a time

United Pharmaceutical Distributors (UPD) has introduced South Africa’s rst eet of electric vehicles (EVs) –with state-of-the-art, solar-powered refrigeration – in both Johannesburg and Cape Town.

Launched in February 2025, the initiative strengthens UPD’s sustainability strategy, while also expanding opportunities for small-business ownership. This is being accomplished through the group’s long-standing owner-driver programme.

“We are committed to building a logistics model that is both environmentally responsible and socially inclusive,” says Trevor McCoy, managing executive at UPD. “By integrating renewable energy into our delivery operations and enabling more entrepreneurs to participate in the supply chain, we are advancing both sustainability and transformation.”

INNOVATION IN HEALTHCARE LOGISTICS

The new eet of 42 Maxus eDeliver 3-panel vans is purpose-built for the pharmaceutical cold chain. Each vehicle is tted with a solar-powered refrigeration unit that is compliant with strict regulatory standards, offering a 6.5m3 refrigerated cargo hold, with a one-ton capacity and a 220–250km electric range on a single charge.

The solar-powered cooling system provides up to two days of continuous operation without sunlight, drawing on the vehicle’s main battery as back-up.

This ensures the secure transportation of temperature-sensitive medicines.

Built using lightweight composite structural PVC – the same material used in high-performance yachts – the refrigeration box is approximately 200kg lighter than conventional units. This reduces drag, improves range and increases payload ef ciency.

POWERED BY RENEWABLE ENERGY

The EV eet is charged through a renewable energy ecosystem, developed in partnership with Everlectric. Smart-charging infrastructure makes use of solar and wind power, while advanced telematics enable real-time monitoring of vehicle performance and route optimisation.

“UPD ACCEPTS ITS RESPONSIBILITY AS A CRITICAL PART OF ENSURING ACCESS TO LIFE-SAVING MEDICINES, AND HAS ADAPTED ITS BUSINESS MODEL TO INCLUDE EMERGENCY DELIVERY SERVICES AS PART OF ITS VALUE OFFERING TO HEALTHCARE PROVIDERS.”

At UPD’s main distribution centre in Johannesburg, the existing solar power generation has been supplemented with an additional 1 170 solar panels and high-speed chargers to support daily eet operations.

Each vehicle saves approximately one ton of CO2 emissions per month. Over its lifespan, the eet is expected to cut emissions by 6.3 million kilograms and save 2.4 million litres of diesel.

EXPANDING THE OWNER-DRIVER MODEL

Since 2003, UPD’s owner-driver programme has created opportunities for circa 80 independent entrepreneurs, helping them build sustainable delivery businesses. The introduction of the EV eet will further strengthen this model, supported by a nancing partnership with Investec Sustainable Solutions.

Signi cantly, 27 per cent of the new EVs are owned by black female entrepreneurs, with UPD targeting 50 per cent female ownership in the coming years.

“Owner-drivers are committed partners in our delivery network,” says McCoy. “They maintain high compliance standards, take care of their vehicles and ensure excellent service to our customers.”

SCALING FOR THE FUTURE

UPD’s delivery route network covers more than 27 000km per day, and plans are underway to expand the EV eet to Durban and Gqeberha.

“UPD accepts it’s responsibility as a critical part of ensuring access to life-saving medicines, and has adapted its business model to include emergency delivery services as part of its value offering to healthcare providers,” says McCoy.

SUPPORTING CLICKS GROUP’S SUSTAINABILITY

UPD, part of the Clicks Group, plays a key role in advancing the group’s broader sustainability strategy – which aims to achieve carbon neutrality through responsible energy use, water harvesting, recycling and sustainable supply chains.

In FY2024, the group increased its renewable energy generation by 41 per cent to 5 135MWh, surpassing its target of 4 500MWh. Battery storage systems at key facilities, including UPD’s Lea Glen distribution centre, have reduced reliance on the national grid during periods of peak demand.

Clicks Group CEO Bertina Engelbrecht sees this as a model for modern corporate citizenship: “This initiative re ects our belief that true sustainability means delivering social value, empowering small businesses and creating a healthier planet for future generations.”

INSIDE THE UPD EV FLEET

Fleet size: 42 Maxus eDeliver

3-panel vans (and growing)

Refrigerated cargo: 6.5m³ capacity, one-ton payload

Electric range: 220–250km per charge

Cooling system: solar-powered, with a two-day backup

Environmental impact: one ton of CO2 saved per vehicle, monthly; 6.3 million kg of CO2 and 2.4 million litres of diesel saved over fleet lifespan

Owner-driver model: 27 per cent of EVs are owned by black female entrepreneurs; 50 per cent female ownership targeted.

Looking ahead

UPD plans to double its EV eet and further expand its renewable energy investments. By scaling this model, UPD will continue to contribute to the decarbonisation of logistics in the healthcare sector – while empowering small businesses and supporting the resilience of the healthcare supply chain.

For more information: +27 11 470 1000 customerservices@upd.co.za www.upd.co.za www.linkedin.com/company/upd/

Smarter Logistics Aids HealthCare Access

TREVOR MCCOY, managing executive, United Pharmaceutical Distributors (UPD) says South Africa’s pharmaceutical market leans on logistics as it’s backbone

Each prescription lled in a pharmacy, every life-saving medicine delivered to a clinic or hospital relies on the strength of the supply chain. At UPD, we see our role not only as a logistics provider but as enabling affordable healthcare access across the country.

Delivering access with precision

Pharmaceutical logistics is about far more than moving boxes. It is about saving lives by ensuring medicines are delivered safely, securely and on time. Our business is de ned by everything from maintaining strict coldchain integrity, to achieving consistent on-time, in-full deliveries – with both reliability and compliance. As the healthcare landscape changes, so must logistics – expanding reach, raising standards and making access to medicines more equitable.

Greening the network

Sustainability sits at the heart of this transformation. UPD is proud to lead the industry with South Africa’s rst eet of 42 electric vehicles tted with solar-powered refrigeration. Purpose-built for the pharmaceutical cold chain, these vehicles reduce carbon emissions while ensuring medicinal integrity is never compromised.

Each vehicle is expected to save around one ton of CO2 each month. Collectively, the eet will curtail 6.3 million kilograms of emissions and 2.4 million litres of diesel over its lifetime. We are also reshaping our distribution centres to operate with renewable energy. At our Johannesburg hub, 1 170 new solar panels and high-speed charging panels have been installed – reducing reliance on the national grid by almost half – a critical advantage in a country where power stability cannot be taken for granted.

Technology that connects

At UPD, we are also investing heavily in technology that strengthens our delivery

promise. Our new telematics platform provides real-time monitoring of charge levels, routes and delivery times across the EV eet.

Smarter-volume planning helps to optimise payloads and reduce wasted kilometres – thereby lowering costs while ensuring that pharmacies, hospitals and clinics receive their supplies with precision.

Expanding the national footprint

Access is also about reach. UPD’s delivery network already spans more than 27 000km daily and we continue to expand our hub footprint to shorten lead times and reach more communities. Our long-standing owner-driver programme remains central to this growth. Since 2003,

it has created opportunities for more than 80 entrepreneurs. Today, 27 per cent of our new EV eet is operated by black female owner-drivers, and the company is targeting 50 per cent female ownership in the near future. This model combines accountability, empowerment and inclusive growth while extending UPD’s impressive service reach across South Africa.

The

road ahead

Looking forward, UPD is committed to scaling responsibly. This involves doubling our EV eet, deepening our renewable energy investments and strengthening our national footprint. The future of pharmaceutical logistics will be de ned by the triad of access, sustainability and technology. At UPD, we embrace that responsibility. For us, logistics is not just about moving medicines – it is about enabling healthcare, empowering entrepreneurs and creating a system that South Africans can rely on.

This is the role we are proud to play and the responsibility we are committed to advancing.

The pulse that sustains us

MARCUS

ELLAPPAN,

director at Bidvest International Logistics, believes logistics is more than the movement of goods

Every container that leaves our ports and every shipment that reaches the end user carries with it the promise of jobs, opportunity and growth.

To shape logistics is to shape the nation’s future. It is the heartbeat of the economy, sustaining our continent’s growth.

By investing in infrastructure and technology, we lay the foundation for reliability and speed, connecting producers to markets more effectively than ever before. South Africa stands as the gateway to our resilient continent. Our ports, rail lines, and road networks form the bridges between local producers and global markets.

AN INVESTMENT IN DEVELOPMENT

South Africa’s growth story will not be written in boardrooms alone but along highways, inside warehouses and across borders.

and professionalism of our team, who make complex transitions look effortless.

From warehouse operations and eet management to customer deliveries and behind-the-scenes coordination, the BIL team ensures smooth execution across every link in the supply chain. Their commitment to meeting tight deadlines, adapting to disruptions and nding smarter ways to operate has been crucial in helping clients achieve their goals.

This is the culture we’re building – a culture of support, resilience, and shared vision, grounded in a strong foundation. As we look towards the future, we are excited about what’s next: continued innovation, growth and deeper integration of technology and talent.

CLIENT SERVICE PERSONIFIED

“SOUTH AFRICA’S GROWTH STORY WILL NOT BE WRITTEN IN BOARDROOMS ALONE – BUT ALONG HIGHWAYS, IN WAREHOUSES, AND ACROSS BORDERS.”

This facility is designed to support the automotive sector with greater speed, reliability and visibility across the supply chain. The strategically located site spans 40 000m2, with space allocated for future expansion. It is purpose-built to optimise container handling and improve ow throughout the logistics network, ensuring just-in-time delivery to clients.

IMPORTANCE OF AUTOMATION

A de ning feature of the new facility is its advanced container tracking system. The platform monitors every container movement in real time, from arrival to departure – offering full visibility and signi cantly reducing human error. With automated gate systems and live data access, clients can manage their operations more ef ciently. This investment signals a decisive step towards a smarter, technology-driven automotive logistics network.

To support that growth story, Bidvest International Logistics (BIL) has been proactively investing in infrastructure and skills. The acquisition of additional vehicles and warehouses in the Eastern Cape, Free State, and other regions has not only extended our footprint but also broadened our opportunities. Taking on the exciting responsibility of managing more client sites represents a strong vote of con dence in our capabilities.

The seamless integration of new warehouses into our operations speaks volumes about the exibility

A key focus area for BIL is its pivotal role in various modes of transport, warehousing, clearing and forwarding and supply chain logistics within the automotive sector. By staying closely attuned to the evolving needs of our clients, the company identi ed two strategic areas to further enhance our automotive logistics service offering: a dedicated container yard and an expanded distribution footprint. The automotive container yard goes live in October 2025, marking a major milestone in our service evolution.

As a proudly South African company, BIL remains committed to its ESG targets and has recently completed a major solar installation at one of its FMCG warehouses in Gauteng. The company also continues to drive Enterprise Development initiatives that advance women-owned transport and logistics companies.

As we move forward, our focus will remain delivering innovative, integrated logistics solutions that support long-term operational success for our partners across all major industries.

Follow: Bidvest www.linkedin.com/company/bidvest-international-logistics/?originalSubdomain=za

THE GREEN MILE

South Africa’s logistics industry needs to reduce its carbon footprint for our economy to remain competitive, writes ANTHONY SHARPE

Across the world, governments, industries and businesses are under regulatory, economic and social pressure to drive sustainability.

Considering that literally all goods ow through the supply chain, it’s essential to examine every facet of their journey from source to consumer to determine how to reduce the carbon footprint of this journey.

A huge component of that footprint lies in transport, which the International Energy Agency estimates accounts for more than a third of CO2 emissions from end-use sectors. Logistics companies are working on incorporating green shipping into their operations and are willing to pay more to do so, with McKinsey estimating that green logistics demand could account for 15 per cent of total global logistics spend by 2030. However, many companies are reluctant to move rst, owing to uncertainty around new technologies and approaches, signi cant capital costs and infrastructural de ciencies, to name a few.

SPATIAL CHALLENGES

For South African companies, being located so far from key export and import markets doesn’t help. Neither does the distribution of our manufacturing and distribution centres. South Africa contributes about 0.4 per cent of global gross domestic product, yet it commands

around 2 per cent of global tonne-kilometres, meaning we require ve times more freight movement per unit of economic output than the world average. This inef ciency is driven largely by spatial mismatches: mining and manufacturing hubs are situated inland, far from coastal ports.

“The logistics industry is very asset-intensive, whether on the warehousing or transportation side,” says Karen Pretorius , founder of KPI Cubed, SAPICS-authorised education partner and past SAPICS director. “So any inroads companies can make in optimising the sourcing of those assets will help, particularly sourcing them from closer to South Africa. Unless you’re manufacturing locally, your carbon footprint will always be higher.”

Pretorius gives the example of iron ore, which is extracted here, sent to China for processing into steel, then shipped back here to be used in various applications. “We need public-private partnerships to protect skills in these areas and use our natural resources without doubling the transport required.”

Fast fact

Failure to decarbonise South Africa’s logistics sector risks undermining up to 78 per cent of its export markets –worth around R2.4-trillion (including R292-billion in basic metals alone) – due to growing exposure to carbon-border adjustments.

Source: Net Zero Tracker

GREATER COLLABORATION NEEDED

Considering the complexity of supply chains, partnerships and co-operation between the various stakeholders involved are crucial for reducing emissions.

“Data visibility, especially of scope 3 carbon emissions, is critically important where cross-border activities occur, with especially stringent reporting requirements required from European-based companies,” says Liesl de Wet, chairperson of the Road Freight Association’s Green Transport Interest Group. “Shared data between shippers, carriers and freight forwarders enables better tracking and reduction of indirect emissions, as

“IF WE CAN GET BACK TO EXPLOITING RAIL AS A TRANSPORT METHOD, IT WILL GO A LONG WAY TOWARDS REDUCING THE CARBON FOOTPRINT OF LOGISTICS.” – KAREN PRETORIUS

well as reporting and management thereof. Identifying hot spots within the overall supply chain can assist companies with focus areas for their decarbonisation efforts.”

De Wet says co-operation extends to joint investment in charging stations and green fuel hubs along major corridors and at ports, citing Namibia’s hydrogen projects as a great example of this.

RAIL IS KEY

In South Africa, joint investment is also key to reinvigorating our rail infrastructure, which has the potential to reduce emissions immensely.

“Because of the vast distances we have to cover in South Africa, reinvestment in rail infrastructure is very important to reduce the number of trucks on the roads,” says Pretorius.

“Recently, several companies have been invited to participate in privatisation of certain aspects of the rail network. If we can get back to exploiting rail as a transport method, it will go a long way towards reducing the carbon footprint of logistics.”

She notes that as rail is slower, this requires longer lead times. “You have to plan for this by keeping extra stock in the supply chain, which impacts your cash ow. Moreover, the lead times for building rail infrastructure are very long.” However, she says, regaining rail capacity through public-private partnerships is essential, as our roads simply cannot keep up with the number of trucks using them –particularly the Maputo Corridor and the N3, which links Durban and Gauteng.

TWEAKING OUR TRUCKS

“DATA VISIBILITY, ESPECIALLY OF SCOPE 3 CARBON EMISSIONS, IS CRITICALLY IMPORTANT WHERE CROSS-BORDER ACTIVITIES OCCUR, WITH ESPECIALLY STRINGENT REPORTING REQUIREMENTS REQUIRED FROM EUROPEAN-BASED COMPANIES.”

She adds that implementing route-planning and load-optimisation technologies can enhance ef ciency and reduce fuel consumption. “Tools that reduce idle time, congestion and mileage, and enhance vehicle performance can signi cantly lower emissions.

“The design of the truck can also impact its fuel ef ciency and environmental impact. Aerodynamic designs, such as streamlined bodies and improved undercarriage air ow, can reduce drag and improve fuel ef ciency.”

Pretorius says that electric vehicles (EVs) have the potential to make an impact for shorter transport legs. “In Gauteng, a lot of the distances covered are quite short, so there’s potential for EVs to cover these.” This is signi cant if you consider that the province accounts for more than a third of household consumption expenditure in South Africa. “That number is increasing in the Western Cape, but Cape Town hasn’t enhanced its infrastructure to cope with the increasing population, so if there’s traf c gridlock, you simply can’t get things delivered at all,” adds Pretorius.

CHALLENGES ABOUND

While the rail sector is being reinvigorated (and thereafter), trucks will continue to trundle along these roads, making improvements essential to reducing emissions in the short term.

“Currently, the biggest impact sits in the implementation of technology, such as advanced eet telematics and onboard monitoring equipment, and interventions such as driver training, route optimisation and other operational excellence initiatives,” says de Wet. “Transitioning to electric and hybrid vehicles can signi cantly reduce emissions, particularly in urban logistics.”

Of course, implementing greener logistics practices, while desirable, is not easy. “All of these new technologies come at a cost, so businesses really need to look at their long-term return on investment from sustainability interventions,” says Pretorius. This can’t happen in isolation either – the ecosystem needs to be transformed too. “It’s not cheap converting your eet to EVs in one go,” says Pretorius, “and then you still need to make sure they can be charged along their routes. You need to partner with truck stops to ensure they have the right facilities in place, while also examining the supply chains of their infrastructure.”

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LIESL DE WET

De Wet also touches on infrastructure, saying that charging stations and grid or alternative energy capacity need to be addressed to cater for increased energy requirements. She adds that nance is a challenge too: “While there are a few green funding instruments available to cover the cost of new technologies, they are still limited.”

Government policy can have a signi cant impact in this regard. “Government policy is critical to enabling the transition,” says de Wet. “There needs to be a focused effort to provide incentives for clean technologies and zero-emission vehicles. These might include tax breaks, subsidies and reduced import duties for EVs and potentially hydrogen vehicles.”

Pretorius feels that many companies are waiting for others to take the lead, while adjusting their plans on a regular basis in response to what has happened in the market. “I think this uncertainty is the greatest challenge. People are becoming reactive instead of really examining their strategy for a speci c sector.”

AWARENESS AND ADVOCACY

The Road Freight Association is South Africa’s largest national trade organisation for the trucking industry. Liesl de Wet chairs the association’s Green Transport Interest Group. “This group provides members with a forum to be exposed to various solutions available in the industry, creates awareness around legislation, educates members on sustainable transport practices and provides an opportunity for stakeholder collaboration to pilot green logistics projects.” She says the group also promotes incentives and infrastructure development to facilitate South Africa’s transition to decarbonisation.

Follow: Karen Pretorius www.linkedin.com/in/karenpretoriuscscp Liesl de Wet www.linkedin.com/in/liesl-de-wet-83903419

FUNDING THE UNBUNDLING

Finance

from the World Bank is aiding reforms and the unbundling of Transnet, writes BIÉNNE HUISMAN

In mid-2025, the World Bank approved a $1.5-billion Development Policy Loan to aid in unbundling Transnet under the oversight of an independent regulator. In a World Bank press statement, Finance Minister Enoch Godongwana detailed how the loan will drive efforts to modernise state-owned enterprises, opening South Africa’s transport sector to private competition, particularly relating to freight, rails and ports. Effectively, it breaks Transnet’s monopoly by unbundling parts of the industry, for example, separating infrastructure from operations, such that private companies would be allowed to run trains on Transnet’s rail lines, invest in terminals or provide competing logistics services.

In the statement, Godongwana said: “Our ongoing partnership with the World Bank will assist us to move forward with greater speed on the reforms vital to transforming our infrastructure landscape.”

In response, David Taylor, private-sector participation manager at private rail services company Traxtion, concurs that this is an important milestone in a long trajectory: “With support and partnership clearly articulated by the Minister of Finance, this highlights the government’s commitment to the reform process, which is an essential message to the South African and international environment.”

Taylor adds that the loan agreement aligns with current reform architecture: “The Economic Regulation of Transport Act provides the regulatory framework for private-sector

Fast fact

The World Bank Transnet loan reforms have the potential to create 250 000 jobs by 2027, according to Satu Kahkonen, World Bank division director for South Africa.

participation, which is crucial for unlocking investment and modernising the network.”

LEVELLING THE PLAYING FIELD

The South African government is well-positioned to create a level playing eld conducive to private-sector investment in rail infrastructure and operations, says Taylor. “This dynamic is clearly articulated in the National Rail Policy that the cabinet launched in March 2022 and further developed in the release of the Freight Logistics Roadmap of 2023. While the Network Statement is on the right track, we anticipate the upcoming version four to articulate an environment to promote this investment.”

Taylor contends that the goals are feasible: “The Minister of Transport Barbara Creecy and her team are doing an incredible job in implementing the structured approach to reform. We must remember reform is a process, not an event.”

Key to these plans is oversight by an independent economic regulator. Taylor explains: “To ensure the impartiality of this market structure, the infrastructure manager and operator should remain separate entities, with oversight by an economic regulator to ensure fair and equitable access is achieved.”

Congress of South African Trade Unions (COSATU) spokesperson Zanele Sabela explains that the regulator would be state-owned, similar to the National Energy

UNDERSTANDING THE LOAN

So, what does the World Bank’s loan mean? According to COSATU spokesperson Zanele Sabela: “In simple terms, it’s funding to pay for the unbundling of Transnet into separate dedicated companies focusing on different parts of its operations, for example, freight, rail and ports.”

Regulator of South Africa, and “will set tariffs for companies to access Transnet’s freight, rail and port network”.

Taylor adds: “Without an economic regulator, Transnet is both the ‘referee’ and the ‘player’. It owns, runs and makes the rules of the playing eld for competitors and new entrants. This creates a market dynamic where ef ciency, competition and investment will remain sti ed. By unbundling Transnet and building an independent regulator, the government is putting in place a referee that is separate from the game. The regulator’s job will be to set the rules fairly, deciding on eligibility criteria for operators, determining the amount they pay, and ensuring that equality is enforced among the operators.”

On behalf of COSATU, Sabela voices concerns: “We need Transnet’s performance to turn around urgently. Its deterioration under the decade of state capture has had a massive impact on jobs in the mining, manufacturing and agricultural sectors and tax revenues needed to fund frontline public services.”

“THE ECONOMIC REGULATION OF TRANSPORT ACT PROVIDES THE REGULATORY FRAMEWORK FOR PRIVATE-SECTOR PARTICIPATION, WHICH IS CRUCIAL FOR UNLOCKING INVESTMENT AND MODERNISING THE NETWORK.” – DAVID TAYLOR

Follow: David Taylor www.linkedin.com/in/david-taylor-mobility