Freight Logistics Roadmap - race against time to fix the country’s logistics mess

In sport as in business, one shouldn’t celebrate before the final hooter. But it appears possible that, as 2023 staggers to a halt, the economy may have been gifted some good news from Cabinet – a decision-making body often associated with bad news for the economy, at least from a private sector point of view. 

But last week Cabinet considered and approved the Freight Logistics Roadmap which effectively paves the way – or signposts the way, to be more precise – for greater private sector involvement in the operation of the country’s rail and port networks.

Of course there were also more debatable Cabinet decisions, notably the decision to endorse PetroSA’s decision to partner with Russian oil company GazpromBank Africa in a mega project– but that’s a newsletter topic for another day. 

For now let us revel in what at face value would indeed appear to be a genuine step forward in the race against time to fix the country’s logistics mess. A World Cup triumph, a slight load shedding reprieve, and now a Cabinet decision we can be proud of and which ushers us into the holiday season with a sense that all is not lost. 

In fact Cabinet’s decision is not entirely unexpected; Government has for several months been inching towards more meaningful public private partnership, no doubt prompted by current fiscal concerns. The energy crisis has also finally convinced many within Government that Business should be allowed to do business, while Government should rather govern and in that way allow the market to resolve some of the country’s most pressing challenges.

The Cape Chamber has long been calling on Government to embrace private sector solutions where competition ensures efficacy of service provision to both the logistics and energy crisis. We do so not to undermine Government policy but rather to support Government, by advocating policy shifts we sincerely believe will ensure a more prosperous future.

Let us hope the new Freight Logistics Roadmap is a sign of positive change to come as we gear up for fresh challenges -- and opportunities – in 2024. 

We wish everybody an enjoyable festive season break.

John Lawson
CEO of the Cape Chamber of Commerce & Industry