While there can be no question that there have been problems surrounding KwaZulu-Natal’s ports in recent years, steps are being taken to improve efficiency and competitiveness,” says Quintus van der Merwe, a senior partner at law firm Shepstone & Wylie, who heads up its customs and international trade and transport department.Private sector investment is supporting the efforts.“Transnet National Ports Authority (TNPA) has signed two key agreements, paving the way for South Africa’s first liquefied natural gas (LNG) import terminal and a new liquid bulk facility at the Port of Richards Bay’s South Dunes precinct,” he told Freight News.Confirmed investments include a 25-year LNG terminal operator agreement with Zululand Energy Terminals, as well as a R123 million agreement with FFS Tank Terminals to develop and operate a liquid bulk terminal. More recently, Transnet signed a R285 million agreement with Grindrod Eyamakhosi Joint Venture to develop a new Richards Bay container handling facility.In May 2025, TNPA announced the selection of five preferred bidders for liquid bulk and green fuel terminals in the port.“This is exciting news. It may help to alleviate Durban’s congestion and make the KwaZulu-Natal ports attractive compared to Maputo and the Namibian ports,” said Van der Merwe.Jennifer Finnigan, a Shepstone & Wylie partner specialising in ports and rail work, adds that a request for proposals (RFPs) has been issued for agri bulk and fresh produce terminals in Durban’s Maydon Wharf.However, uncertainty about rail tariffs and the impact of trucks on the roads pose ongoing challenges. “We are nearly at the end of May and the promised updated Rail Network Statement, which was due on 1 April 2025, has not yet been published,” she told Freight News. “What remains to be seen is the impact of much higher tariffs proposed by Transnet’s Rail Infrastructure Manager (TRIM) on the viability of slot applications,” she said.TRIM considered three models for its 2025/2026 tariff: keeping prices the same as 2024/2025; a CPI-based adjustment; and a total cost recovery model. “TRIM’s proposal recommends applying option two, but even that results in very high tariff increases for intermodal and automotive cargo in particular,” said Finnigan. “TRIM’s approach is that certain industries are using road transport and can therefore afford to pay more for rail transport. This ignores the fact that TRIM’s charges are just part of the ultimate cost of rail transport to cargo owners.”Allan Heydorn, a partner in Shepstone & Wylie’s international trade and transport department in Richards Bay, added: “The damage to the road infrastructure and congestion caused by side tipper trucks is an ongoing problem, with many of the roads to the port now impassable.“The road network within the port is also problematic and requires upgrading.”There is some light at the end of the tunnel. “The congestion aspect has been partially alleviated by two truck stops,” said Heydorn.“We no longer have kilometres of vehicles blocking one lane of the John Ross Highway. “Transnet appears to have finally accepted that it cannot improve rail and port efficiencies without working with business. While moving cargo to rail should relieve road congestion, we have a long way to go to make rail work and the ports efficient,” he said. ER
