Private Firms Keep South Africa’s Goods Moving as Railways Stall

Econ Desk

September 9, 2025

2 min read

As state rail falters, private road freight picks up the slack in South Africa.
Private Firms Keep South Africa’s Goods Moving as Railways Stall
Photo by Luke Sharrett/Getty Images

According to a freight index developed by the policy and economics editor at The Common Sense, Bheki Mahlobo, as state-run rail volumes declined over the past decade, private road freight companies have more than doubled the tonnage they carry on the country’s roads.

For several years, the state-run railways have struggled with cable theft, power cuts, and weak management, with rail volumes declining significantly over the past decade. One of the consequences is that infrastructure bottlenecks have held back the ability of manufacturers, miners, and farmers to contribute to any South African economic reform effort.

Government policymakers have also been slow to concession rail and port infrastructure to private providers, which is an increasingly common practice globally. Recent efforts, whilst welcomed by organised business, are privately held to be too modest to drive any substantive improvement in state-owned infrastructure efficiencies.

As a consequence, private road freight operators have seen their volumes increase significantly.

“It is not just about picking up the slack,” says Mahlobo. “When private firms run logistics, they invest in better vehicles, manage routes intelligently, and deliver on time. The result is a network that keeps South Africa’s economy moving even as rail infrastructure continues to lag.”

However, Mahlobo cautioned that road freight was not an adequate substitute for an efficient rail network, as the costs associated with road freight are often higher than those of an efficient rail network.

Categories

Home

Opinions

Politics

Global

Economics

Family

Polls

Finance

Lifestyle

Sport

Culture

InstagramLinkedInXX
The Common Sense Logo