Infrastructural investment in South Africas rail freight sector could help the country tap into its perceived potential as an anticipated primary driving force behind the African Continental Free Trade Area AfCFTA.
Consisting of 55 members with a combined GDP potential of US3.4 trillion, the AfCFTA, as it currently stands, is the worlds largest trading bloc, representing up to 1.4 billion people and is seen as a transformative opportunity for our continent.
But, says Warwick Lord, CEO of the Cato Ridge Inland Port CRIP, its success hinges on reliable logistics infrastructure.
The need for enhanced rail freight capacity in South Africa is best illustrated in the persistent cross-border road freight problems experienced on the countrys various territorial boundaries.
Lord says these unpredictable delays undermine supply chain efficiency.
However, a scheduled rail service running from Durban through Cato Ridge to destinations like Gaborone or Lusaka could change everything. This predictability is invaluable for supply chain planners, enabling businesses to reduce inventory holdings and operate more efficiently.
The load alleviation and distribution dynamics of CRIP have also been mentioned in relation to nagging land-side issues at the Port of Durban where harbour carriers consistently complain about Pier 2 access.
Waterside container-handling improvements, reported by Transnet and confirmed through independent data aggregation by the South African Association of Freight Forwarders, Business Unity South Africa and Linernet, all point to the need for a road-to-rail rethink.
Peters also supports this notion. Probed about road freight delays at DCT Pier 2, the Transnet Port Terminals executive says the gate at the terminal is suffering from design lag in relation to an increase in STS container moves. Evacuating boxes out of the port is simply not keeping pace with the ports above-average performance, he adds.
Moreover, it exposes the need to solve harbour carrier congestion by shifting more containers onto rail, according to Peters.
Mike Daniel, CEO of multimodal logistics disruptor RailRunner South Africa, agrees with Lords view that the CRIP could become a major link in Durbans re-emerging role as a potential leading port in the sub-Saharan region.
It is uniquely positioned to support AfCFTA objectives by creating a hub-and-spoke model that goes beyond simple cargo movement, Lord says in a recent social media post.
By integrating rail connectivity with special economic zone designation, we can establish customs-controlled areas that allow duty-free imports of raw materials for export-oriented production.
This creates a powerful ecosystem where goods can be imported, processed and re-exported to AfCFTA markets from a single, highly efficient point. Such integration transforms logistics from a cost centre into an economic enabler, fostering the cross-border manufacturing that AfCFTA was designed to promote.