By Koketso Mamabolo
A R50-billion idea could change the logistics landscape in the next decade, solving a seemingly intractable problem of national importance: inefficiency, congestion and the associated costs. The idea? A 1400-hectare inland, multimodal logistics hub in Gauteng which could create some 50 000 jobs.
The project has been in the works for over a decade, stalled further by the COVID-19 pandemic. The Durban–Gauteng freight corridor was identified as the country’s most strategic freight route in the National Development Plan, but Transnet estimates that freight container volumes could reach 11.2 million containers per year by 2030, and it is clear that the targets will not be met in time to deal with the volumes.
The N3 and Durban-Gauteng rail infrastructure will not be enough for future demand. In comes the Port of Gauteng.
The context
The vision is set out in a white paper ominously titled, “No rail between Durban & Gauteng by 2035, unless we act decisively today,” which was released by the developers behind the project, NT55 Investments, at the end of Transport Month.
The white paper dissects the problem, and presents three options the government has, with a recommendation which combines rail and road freight “in a way that ensures sustainability and secures long-term economic growth.”
The paper suggests that with “proper planning, investment, and use of infrastructure, the Freight Corridor can become a driver of national economic growth and job creation.”
The land earmarked for the hub, a substantial portion of which is owned by NT55 Investments, is strategically placed at the junction of the N3, N12, and N17, where a large amount of the country’s freight movements converge.
The project could stem the tide away from a reliance on road freight back to rail. Between 2014 and 2019, Transnet was losing R1-billion annually, which shot up to R3-billion during the pandemic. The number of trains running daily plummeted from 80 in the pre-2012 peak years, to a paltry 15 per day by 2023/24. The 690-kilometre journey from Durban to City Deep takes 24 hours by rail, compared to just 8 hours by truck on the N3.
It’s simple maths: moving goods by truck is more time efficient.
“We’ve got to think long term,” said NT55 Investment’s Francois Nortje at the launch of the white paper. “We can’t carry on with the amount of truck traffic we have on the N3. It’s unsustainable. The future is about an increase in low-value volumes and companies like Shein and Temu are flying their goods in. At some point they’re going to shift to containers.”
Before the containers even reach the Port of Gauteng, they’ll have to go through the country’s largest port in Durban which has faced its own challenges. The port was ranked last by the World Bank in 2024. Although things are improving, they will have to get drastically better to handle the 11.2 million containers which are projected to come in, with American giant Amazon also joining the list of e-commerce firms making a mark in the country.
The solutions
The developers highlight how container trucks on the corridor are being used inefficiently. Over 80% of containers entering the country via ships are 12-metres, while the remainder are 6-metres. Despite the standard trucks being able to carry one of each, there aren’t enough 6m containers to balance the load which has resulted in most 12m containers being transported on 17m trucks as opposed to the maximum of 22 metres allowed on the N3.
The result is increased costs per trip and congestion which places pressure on infrastructure.
Read the full story in the G20 edition of Public Sector Leaders
Sources: Port of Gauteng | Freight News | Engineering News | Nova News
