JOHANNESBURG, March 16 (Xinhua) -- South African President Cyril Ramaphosa on Monday warned that inefficiencies in the country's transport infrastructure are constraining economic growth, as the sector is vital to boosting competitiveness and inclusive development.
Addressing the inaugural National Transport Conference at Gallagher Estate in Johannesburg, Ramaphosa said that current logistics inefficiencies cost the South African economy about 1 billion rand (about 59.6 million U.S. dollars) per day.
"The transport sector is integral to our effort to make economic growth work for everyone," he said, adding that it is about unlocking opportunity, restoring competitiveness, reducing inequality and enabling inclusive growth.
Ramaphosa also noted rising geopolitical tensions, particularly in the Middle East, which have driven Brent crude oil prices above 100 dollars a barrel.
"The geopolitical environment is shifting rapidly. Old trade routes are being redrawn, and supply chains reconfigured," he said, adding that several African nations are now investing heavily in rail infrastructure to adapt.
The conference follows years of state efforts to repair a transport system severely degraded by criminal activity. Key priorities include addressing inefficiencies at ports and modernizing the rail network to facilitate smoother exports.
Ramaphosa said that 69 percent of the country's freight is currently moved by road rather than rail, a shift that places significant strain on roads and contributes to poor road safety.
He said that the National Rail Policy of 2022 and the National Freight Logistics Roadmap of 2023 are central to attracting private sector investment while keeping rail and port assets under state ownership.
"Building on the experience of our response to the energy crisis, the National Logistics Crisis Committee has brought together government departments and agencies, mobilizing expert support to drive the recovery of our logistics capabilities," he added. Enditem
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