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Reforms take shape in the logistics sector

Home Transport & Logistics Reforms take shape in the logistics sector

AFTER increasing somewhat in December 2023, the Ctrack Transport and Freight Index (Ctrack TFI) declined notably in January to an index level of 119.3, a drop of 2.1% compared to December’s level of 121.9.

Commenting on trends in the logistics sector, Ctrack says that, although born out of a crisis, some progress has been made towards the end of 2023 to address the sector’s challenges and urgent focus is needed to take these reforms to fruition.
According to the latest report from Operation Vulindlela (Q3/Q4 2023), progress has been made in the following areas:

Approval of the Freight Logistics Roadmap. Working alongside government and Transnet, the Freight Logistics Roadmap was finalised and approved by Cabinet, providing a clear reform path towards resolving immediate operational challenges driving the decline of rail and ports. It also outlines interventions required to fundamentally restructure the logistics sector through policy and legislative interventions.

The Minister of Public Enterprises announced the appointment of a permanent board for Transnet National Ports Authority (TNPA). This will replace the current interim board and complete the process of corporatizing the TNPA. The new board will provide critical direction and oversight of the entity as the entire logistics sector undergoes reform.
The National Logistics Crisis Committee (NLCC) has been formally constituted with participation from relevant government departments, Transnet and business. The NLCC’s objectives are to improve the operational performance of freight rail and ports; restructure Transnet to ensure its future sustainability; implement reforms to modernise the freight transport system and restore its efficiency and competitiveness.

The Economic Regulation of Transport (ERT) Bill has been passed by the National Council of Provinces and public consultation has been concluded. It will now be submitted to the President for assent. Establishing the Transport Economic Regulator is a critical step in the reform of the logistics system.

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