Private sector throws lifeline to South Africa’s biggest transport company

South Africa’s biggest transport company, Transnet, has entered into an agreement with Belgian port entities to modernise South Africa’s crumbling port structures.

Speaking to SAFM, Transnet Group Chief Executive, Michelle Phillips, said that the company attended the World Economic Forum (WEF) in Davos, Switzerland, hoping to find new strategic partners.

“It is important that the world knows our journey is beginning to take form, and that in the throes of transformation, we are open not only for the local economy but for international companies,” she said.

Phillips explained that Transnet is on a journey to improve skills at its ports, as well as the productivity and efficiency of its systems and networks.

“Unfortunately, with the challenges we have experienced, it has taken us back, but we need to catch up with the rest of the world, embrace innovation, and get our people on stream and aligned,” she added.

According to Phillips, for the sake of the local economy, the transport and logistics sector in South Africa cannot continue to be left behind.

She said that Transnet engaged with its international counterparts, as well as international investors, at the WEF to acquire the needed innovation and skills to aid in its recovery journey.

The Democratic Alliance has had its say on the state of the nation’s ports, highlighting failures at the Port of Cape Town during the latest export season.

The party did acknowledge that there have been improvements in parts of Transnet’s operations, including better equipment availability and a clearer reform agenda under the current leadership.

It did, however, note that progress remains uneven and that incremental improvements cannot mask the reality that the logistics system remains structurally weak.

The latest Container Port Performance Index ranked the Cape Town and Coega ports at 400th and 402nd, while Durban placed last at 403rd.

Despite these challenges, Daily Investor reports that Transnet has seen sustained improvement in its operations, and local ports are considered among the most improved in the World Bank’s 2025 rankings.

Agreements reached

Amid ongoing calls for private sector partnerships, private rail operator Traxtion announced a R3.4 billion investment in South Africa’s logistics sector at the end of last year.

This investment will include R1.8 billion for locomotives and R1.6 billion for wagons, with the potential for spending to rise to R5.8 billion over time.

To ensure further investment and improvement in local port structures, Phillips stated that it is important to learn from the rest of the world.

As such, agreements with the Port of Antwerp-Bruges International (PoABI) and the Antwerp/Flanders Port Training Centre (APEC) were struck.

Transnet reported that the Memorandum of Understanding (MoU) signifies a major milestone in efforts to modernise the local port system, enhance operational efficiency, and strengthen regional trade competitiveness.

It establishes a framework for cooperation in port operational excellence, digitalisation, sustainability, infrastructure planning, and regional corridor development to strengthen South Africa’s logistics performance.

Collaboration includes operational, strategic, and governance advisory support, sustainability strategies for energy and ecological transitions, amongst others, and port operation and digitalisation.

Corridor development and foreign investment programmes also form part of the agreement, as well as training and strengthening of human and institutional capacities.

“This partnership comes at a critical time as we accelerate the modernisation of our ports and
strengthen South Africa’s position in regional and global trade,” noted Phillips.

“We will leverage global best practices to strengthen our ports’ strategic position as
gateways for regional and international trade.”

Managing Director of PoABI and APEC, Kristof Waterschoot, added that collaboration will focus on trending topics like energy transition and decarbonisation, yet still embrace operational efficiency and port logistics.

Jacques Vandermeiren, CEO of the Port of Antwerp-Bruges, added, “We are committed to building capacity and sharing expertise in the port sector, with a strong focus on the energy transition and sustainability.”