South Africa’s Rail Sector Shows Signs of Recovery as Road Freight Declines

South Africa’s Rail Sector Shows Signs of Recovery as Road Freight Declines

South Africa Rail Freight Rises to 17.9% in 2024 as Road Transport Contracts by 8.3%

South Africa’s freight transport landscape is undergoing a gradual shift, with rail freight beginning to recover while road freight shows signs of contraction, according to independent economist Elize Kruger.

After reaching nearly 90% of total freight payload in November 2022, the volume of goods transported by road has steadily declined, now accounting for approximately 82.1%.

Kruger noted that following modest growth of 1.5% in 2023, the road freight sector experienced a sharp contraction in 2024, with payload volumes falling by 8.3%.

By contrast, rail freight—which had dropped to a low of 10.9% in November 2023—has shown tentative signs of recovery.

As of March 2024, rail’s share had climbed to 17.9%, up from a 2024 average of 16.9% and 15.6% in 2023.

“Although rail’s current share remains below the long-term average of 25.9% observed between 2008 and 2017, before performance deteriorated significantly, the upward trend is encouraging,” Kruger said.

Speaking at a recent Transport Forum, she emphasised that many of the challenges facing South Africa’s rail infrastructure today stem from years of underinvestment.

“What we’re struggling with now, in terms of rail inefficiencies, dates back to a time when capital expenditure into rail was minimal or non-existent,” she explained.

While the rail sector still has a long road to full recovery, its recent progress is seen as a positive sign for diversifying freight logistics and reducing the overreliance on road transport in South Africa.