President Ramaphosa notes progress in ending logistics crisis

28 March 2024

President Ramaphosa chaired the meeting of the National Logistics Crisis Committee (NLCC) on the 28th of March 2024 to receive an update on progress achieved since the establishment of the NLCC in June 2023, and discuss where challenges persist within freight logistics system.

In recent months, The Freight Logistics Roadmap has been approved by Cabinet, enabling urgent reforms in the freight logistics sector. 

A crucial reform is the development of a Network Statement which sets out the process for rail operators to access the network.  A draft statement has been finalised and released for public comment. 

Transnet’s recovery plan is showing significant progress, with an additional 10 million tonnes (Mt) recovered against the pre-recovery trend.

The Durban Port has seen a 73% reduction in the number of vessels at anchorage since November 2023. 

Work is ongoing to improve border crossings on the most critical road corridors, significant progress has been made in recent months in reducing processing times at priority border posts.   

PRASA continues to recover rail services, with 28 out of 40 lines fully operational and functional stations increased from 236 to 256 across the county’s metropolitan areas.

President Ramaphosa welcomed this progress and noted the momentous effort from both Government and Business through the Partnership. 

Despite progress, the meeting noted that significant challenges remain. Rail volumes are projected to be 2% below the recovery plan target for the 2023/2024 financial year. Contributing factors include the condition of the rail network, locomotive reliability, and security incidents. 

The meeting resolved that Government, through the NLCC, will prioritise interventions to deploy additional security personnel to critical rail and port corridors. The meeting also resolved to urgently explore financial mechanisms to address the rail infrastructure backlog. 

President Ramaphosa reaffirmed government’s continued commitment to working with social partners to address challenges in the freight logistics system. 

President Ramaphosa was supported by Ministers of Public Enterprises, Transport, Finance, Presidency, Trade, Industry, and Competition, and Justice & Constitutional Development. 

Issued by The Presidency, 28 March 2024