Logistics sector edges back from two-year low

South Africa’s logistics sector is showing signs of recovery after hitting a two-year low in January, the latest Ctrack Transport Freight Index (Ctrack TFI) has found.

The latest TFI rose to 118.5 in September, up 3.5% from January, though only 0.7% higher than a year earlier.

But recovery remains uneven, Ctrack reports.

In the first nine months of 2025, road freight, pipelines, storage and handling declined by 5.8%, 2.9%, and 5.6%, while airfreight grew 6.8%, rail freight 3.2%, and sea freight 1.7%.

Overall, the sector lagged 3.3% behind 2024.

Road freight, responsible for 85.6% of South Africa’s interior cargo, has been hit by cross-border delays and port disruptions, especially at Durban.

Government efforts to shift cargo from road to rail are under way but are expected to have medium-term impact. Heavy vehicle traffic on the N3 rose 3.8% in the first nine months of 2025, while traffic on the N4 fell around 20% after years of historic highs.

Rail freight is gradually recovering, rising to 14.5% of total payload in August 2025, the TFI shows.

This is close to the forecast of 14.6% for the year, though still below the 10-year pre-decline average of 22%.

Logistics utility Transnet has boosted freight volumes to over 160 million tonnes, a 5.5% increase, with rail volumes up 3.3% year-to-date.

Recent reforms include opening rail routes to private operators, advancing regulatory frameworks, and introducing private sector participation at Durban Pier 2 Container Terminal. Port upgrades have cut vessel anchorage by 75% and improved throughput, although South African ports remain among the world’s lowest ranked.

Airfreight continues to shine, with cargo loads up 9.6% and total flight movements rising 1.5% in the first nine months of 2025.

Ctrack CEO Hein Jordt told Logistics News that the steady recovery and structural reforms were expected to lower transport costs, support exports, and create jobs, though the sector is not out of the woods yet.