Govt says working around the clock to tackle logistics sector crisis

JOHANNESBURG - Government said it’s working around the clock to tackle operational constraints and fast-track reforms in the logistics sector as the country tries to revive its economy.

The frail logistics sector has overtaken the energy crisis as the biggest economic risk, prompting an urgent response to avoid an even bleaker economic outlook.

President Cyril Ramaphosa and his Cabinet met with business leaders this week for the first time in the new administration to discuss progress made by the public and private sectors in addressing infrastructure challenges.

Transnet’s ports are among the world’s worst performing in terms of efficiency.

Over the past five years, the parastatal also saw a decline in the volumes on the rail network from 226 million tonnes to about 149 million tonnes at the end 2023. That number has now marginally improved.

While headway has been made, the head of project management in the Presidency, Rudi Dicks, said it’s still a tough road ahead.

"If we are not getting the volumes up, then we do begin to see the impact on critical sectors that are dependent on the ports and freight rail system, mining in particular."

Experts have warned that failure to reverse the collapse of the logistics sector will cost the economy billions of rands.