Port of Gauteng has delivered a critical commercial reality check to the Department of Transport following the release of its Private Sector Participation Request for Information results on October 26. The developer, Francois Nortjé, welcomed the initiative but cautioned that the current framework imposes an “impossible economic burden” on the Durban-Gauteng Freight Corridor, highlighting fundamental challenges that must be addressed for rail to succeed alongside road freight.
“The RFI fails to address the competitive reality of road freight, which is contributing to the Container Rail Corridor’s devastating R2.3 billion annual losses,” Nortjé said. “Without defining a path to profitability, the true ‘bottom line’, any PSP structure is fundamentally flawed. A project that is not profitable will not get private sector buy-in. It is that simple.”
The Problem with Non-Compliant Operators
The Port of Gauteng asserts that unscrupulous operators who undercut rates while compromising safety and maintenance have created an uneven playing field, threatening the viability of rail. Few reputable transport companies currently move containers on the corridor because the rates are unrealistic. The discrepancy between the 550 km N3 road route and the 690 km rail line further reinforces rail’s struggle to compete. “Basic enforcement of existing road traffic and safety regulations is a foundational step that has also been critically overlooked. We must deal with non-compliant operators to level the playing field for rail,” Nortjé added.
The developer’s warnings align closely with comments from the Road Freight Association. RFA CEO Gavin Kelly notes that the Port of Gauteng represents a pivotal opportunity to address systemic inefficiencies in South Africa’s logistics network, particularly the Durban-Gauteng corridor. Kelly emphasised that integrated road and rail operations are essential. “Port of Gauteng may well provide the missing link that can make rail competitive again,” he said. The RFA also highlighted that first- and last-mile road connections remain critical, as road freight provides the vital interface for rail to reach customers without sidings or direct access to depots.
Port of Gauteng’s White Paper, released in September, outlined a roadmap for correcting the economic imbalances that undermine rail. The Paper proposed directing cross-subsidies from N3 tolls to the Transnet Rail Infrastructure Manager, reforming N3 Toll Company into a hybrid cost recovery model, empowering the Transport Economic Regulator to oversee tolling and road-rail balance, and requiring PBS trucks to operate under abnormal permits between Durban and Gauteng.
The White Paper received overwhelming support from government, logistics stakeholders, and industry associations, though feedback flagged the need to address non-compliant operator behaviour, which continues to threaten the corridor.
The importance of Performance-Based Standards vehicles was also highlighted by Paul Nordengen, Director of Heavy Vehicle Transport Technology Africa. He noted that PBS pilots have already reduced crash rates by 39 percent, and their strategic integration into the corridor could improve safety, reduce congestion on the N3, and lower operational costs for freight operators.
Nortjé urged the Ministry of Transport to act decisively. “We call on the Ministry to take two critical steps now: enforce the law against non-compliant trucking operators, and urgently implement the regulatory changes outlined in our White Paper to establish a genuinely level playing field. Without immediate action, no amount of private sector interest can save the Durban-Gauteng Freight Corridor,” he said.
The Port of Gauteng’s integrated approach aims to manage road competition while providing rail with the infrastructure and support needed to recover and compete sustainably. Nortjé concluded that the strategy safeguards the corridor’s immediate functionality while establishing the foundation for a long-term, resilient logistics network. “Our strategy manages road competition today, while preserving the necessary space to facilitate rail’s comeback tomorrow,” he said. The RFA supports this vision, reiterating that collaborative road and rail operations, coupled with private-sector participation and robust enforcement against non-compliant operators, are essential for success.
The White Paper and associated recommendations signal a transformative opportunity for the Durban-Gauteng Freight Corridor. With private-sector investment, regulatory reform, and industry collaboration, the inland port could become the long-awaited solution to decades of congestion, inefficiencies, and safety challenges.
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