Freight rail and port reforms were beginning to deliver measurable improvements, with freight volumes increasing by more than 50% since 2023, the World Bank said in its latest assessment of South Africa's infrastructure reform programme supported by its $1.5 billion (R27bn) Development Policy Loan.
Although the financing package was approved in June 2025, the World Bank's latest update highlights progress made under the reform programme, including improved rail and port performance and increased private sector participation.
The World Bank said the reforms were supporting greater competition in freight rail and the implementation of South Africa's first port terminal concession in Durban, with the aim of reducing logistics costs and improving trade competitiveness.
The institution said freight rail and port volumes had increased by more than 50% since 2023, although it did not specify the measure used.
Government was building on reforms that were already delivering results in the transport sector while broadening infrastructure modernisation efforts, Finance Minister Enoch Godongwana said.
Commenting on the latest update, Nedbank Corporate and Investment Banking divisional executive of trade Niron Rampersad told Freight News that the significance of the programme extended beyond the funding itself.
"The importance of the funding lies in the reform support it can provide for freight transport efficiency, infrastructure resilience and greater private sector participation," Rampersad said.
"If executed well, these reforms should help address rail and port bottlenecks, improve trade corridor reliability and strengthen South Africa's competitiveness as a regional logistics and export platform."
