Logistics and leadership: Building SA’s future

South Africa stands at a crossroads; lessons from the past must guide our efforts to fix logistics, ensure accountability, and build a resilient economy. JUANITA MAREE writes that while progress is undeniable, pitfalls do remain. So how do we safeguard the future of SA Inc.?

From a logistics point of view, progress is evident. A growing political maturity is emerging in some critical areas, fostering positive change, boosting confidence, and introducing new dynamics.  Policy reforms are unlocking new opportunities, opening the way for some of the national institutions to deliver improved operational performance as the nation continues to work towards stabilising the economy.

The Presidency has renewed its mandate to the National Logistics Crisis Committee (NLCC) for 2025. This, in itself, illustrates that the crisis in logistics is ongoing, emphasising the need for a sustained focus on finding solutions through public-private consultation and government’s commitment to strategic cross-sector collaboration. The extended mission period for the NLCC also serves as recognition of the tangible positive outcomes this collaborative consultative model is delivering to the nation.

Opening critical projects to private sector participation is essential to the transformation. The democratisation of energy production for national consumption finally put an end to loadshedding, after years of poor performance. It is notable that this was done under South African management and leadership – South African expertise and oversight.

In search of growth and development, the introduction of concessionary opportunities opens the way to new dynamics and funding models. This enables critical projects for private sector participation – fundamental ingredients in the transformation away from an inefficient, monopolised service platform that is holding back progress. The introduction of concessionary and third-party opportunities to the business sector cuts across two major operations at the heart of the logistics sector. These include the management and operation of Durban Port Terminal Pier 2 and the opening to third-party rail operators to bid under the terms of the Transnet Network Statement, gazetted by Minister Barbara Creecy at the close of the 2024 calendar year.

Drafting of the legal platforms to serve third-party agreements takes centre stage, as terms and conditions will underscore the rate of success for these ambitious programmes. The legal basis serves as a key administrative tool to steer working arrangements for concessionary and third-party opportunities in areas fundamental to job creation, economic growth, and the achievement of South Africa’s National Development Plan – and, indeed, the fixing of the ongoing national logistics crisis.

The country is on a growth trajectory, but there is no room for error. The lessons we’ve learned demand absolute transparency and active engagement from South Africa’s public and private sector experts. It is essential that all concessionary and third-party contractual terms are thoroughly consulted with subject matter experts who are active, participating stakeholders – particularly in areas such as port management and the restoration of the rail freight system.

This is a delicate moment for our fragile economy. Our resilience is being tested, not only by internal challenges, but also by external shocks, such as the instability in Mozambique following recent post-election unrest. This regional interdependence significantly impacts the logistics sector as it grapples with supply chain disruptions, violent uprisings, road blockages, and the destruction of infrastructure.

As a nation, we are experiencing casualties in the form of business failures, job losses, and diminished confidence in the region. South Africa is Mozambique’s top provider of goods and services. This highlights the good and bad consequences of our deep regional interconnectedness.

While the honeymoon period for the Government of National Unity may be over, we must acknowledge the meaningful progress made at the foundational level. The collaborative spirit at play is driving these improvements, which are crucial to an economic recovery and the future of our nation.

The logistics sector plays a pivotal role in South Africa’s economy, its impact extending across the broader SADC region and beyond. However, South Africa faces some of the highest logistics costs in the world, adding to inflationary pressures and placing strain on livelihoods. Optimising logistics is therefore crucial for fostering sustainable growth and ensuring long-term economic stability – the foundation of the future we aim to build.