South Africa’s Transport Sector Shows Early Signs of Recovery Amid Mixed Performance

South Africa’s Transport Sector Shows Early Signs of Recovery Amid Mixed Performance

Ctrack Index: South Africa’s Logistics Sector Rebounds in 2025 Despite Uneven Recovery

South Africa’s logistics sector is beginning to recover after reaching a two-year low in January, according to the latest Ctrack Transport Freight Index (Ctrack TFI).

The index climbed to 118.5 in September, representing a 3.5% improvement since January and a 0.7% increase year-on-year. However, Ctrack notes that the recovery remains inconsistent across transport modes.

In the first nine months of 2025, road freight, pipeline volumes, and storage and handling declined by 5.8%, 2.9%, and 5.6%, respectively. By contrast, airfreight grew 6.8%, rail freight increased 3.2%, and sea freight rose 1.7%. As a whole, the sector still trails 3.3% behind 2024 levels.

Road freight responsible for 85.6% of South Africa’s inland cargo continues to face disruptions, including cross-border delays and congestion at key ports, particularly Durban.

Government-led initiatives to shift more cargo from road to rail are progressing but are expected to deliver results only in the medium term.

Heavy-vehicle traffic on the N3 corridor rose 3.8% during the first nine months of 2025, while traffic on the N4 dropped by roughly 20% following years of elevated volumes.

Rail freight is slowly regaining ground. The TFI indicates that rail accounted for 14.5% of total payload in August 2025—close to the projected 14.6% for the year, though still below the 10-year pre-decline average of 22%.

Transnet has reported freight volumes exceeding 160 million tonnes, a 5.5% increase, with rail volumes up 3.3% year-to-date. Recent reforms involve opening rail routes to private operators, improving regulatory frameworks, and introducing private-sector participation at the Durban Pier 2 Container Terminal.

Port upgrades have reduced vessel anchorage times by 75%, leading to improved throughput, despite South Africa’s ports still ranking among the world’s weakest performers.

Airfreight continues to outperform other modes, with cargo loads up 9.6% and total flight movements increasing 1.5% during the first nine months of 2025.

Ctrack CEO Hein Jordt told Logistics News that the gradual recovery and ongoing structural reforms should help reduce transport costs, support export growth, and create jobs. However, he cautioned that the sector still faces challenges on its path to full recovery.