Port of Gauteng's $50bn plan to transform Durban-Gauteng freight corridor
This premier trade gateway is set to transform Africa’s freight transport landscape by addressing critical inefficiencies in South Africa’s logistics system.
South Africa’s economy is pivoting towards a higher-volume, lower-margin model and the entry of e-commerce giants such as Shein, Temu, and Amazon is driving this shift. This high-volume trend isn't limited to consumer goods; the volume of imported cars is also rising rapidly. As their volumes scale, these companies will increasingly switch from air freight to container shipping, placing substantial new pressure on the already strained Durban–Gauteng freight corridor.
Francois Nortjé, developer of Port of Gauteng, outlines the transformative vision: “We’re creating Africa’s most advanced inland trade gateway. This facility represents our commitment to solving South Africa’s freight crisis whilst generating massive economic returns. The 50,000 permanent jobs are just the beginning; we’re creating a platform for decades of sustainable growth.”
“Port of Gauteng has developed this White Paper in response to South Africa’s growing freight transport dilemma,” continues Nortjé. “Since the 2013 National Development Plan set ambitious 2030 targets for shifting freight from road to rail, little progress has been made — and with just four years to go, the need for decisive action is urgent. As road congestion worsens and rail volumes decline, this paper outlines a practical solution — leveraging the Port of Gauteng’s R50bn inland port to restore balance, reduce costs, and unlock long-term economic growth.”
Prime position and world-class infrastructure
Strategically positioned at the junction of the Container Rail Corridor and the N3, N12, and N17 highways, Port of Gauteng is one of the country’s largest private sector initiatives.
The Port will feature two 2.2km flat rail alignments designed for efficient container handling, along with integrated solar power, rainwater harvesting, and advanced recycling systems. The planned facility will include a world-class car terminal, and container rail terminal, enabling rapid, high-volume throughput and seamless train-to-truck transfers.
The project directly addresses the mounting crisis facing the Durban–Gauteng freight corridor, where rail currently moves less than 14% of volumes — far below the National Development Plan’s 50% target.
The NDP 2030’s critical window: The missing link
The National Development Plan (NDP) 2030 prioritises the Durban–Gauteng freight corridor, calling for improved capacity, efficiency, and sustainability. Yet, with only four years remaining until 2030, high transport costs and poor freight infrastructure are preventing South Africa from meeting its targets.
To succeed, the country urgently requires:
- A decisive shift from road to rail to meet the envisioned 50% modal split, by addressing rail’s lack of intermodal flexibility.
- A reduction in truck traffic on the N3 by roughly one-third (volumes undisclosed by N3TC/Sanral).
- A reduction in logistics costs without the need for unsustainable government subsidies for rail.
The White Paper reveals the depth of the crisis, noting that Transnet lost R1bn annually on the corridor between 2014 and 2019, with losses escalating to R3bn each year during Covid-19. Rail volumes subsequently plummeted from 80 trains daily to just 15 per day by 2023–2024.
“Port of Gauteng changes everything. It provides the missing link that makes rail competitive again. With purpose-built rail alignments and future three-hour turnaround times at the container and car terminals, we can finally deliver the reliability that shippers demand,” says Mike Daniel, CEO of RailRunner South Africa.
Setting new standards with PBS vehicles
Port of Gauteng’s innovative approach integrates Performance-Based Standards (PBS) vehicles — long truck and trailer combinations capable of carrying two containers — with enhanced rail infrastructure. This capability dramatically improves capacity and efficiency while reducing emissions.
PBS integration enables optimal container pairing, significantly improving road safety by reducing truck traffic on the N3 by approximately one-third and ensuring safer, more dynamically stable heavy vehicles.
Dr Paul Nordengen, director at Heavy Vehicle Transport Technology Africa, emphasises the significance: “Port of Gauteng’s integration of PBS vehicles represents the most significant advancement in heavy vehicle transport efficiency we’ve seen in decades — reducing truck movements by up to 40% and improving safety outcomes on our most critical trade corridor.”
With container volumes projected to grow from 2.8 million to 11.2 million annually, the development’s rail-ready infrastructure and PBS vehicle integration will be crucial for sustainable growth.
The PBS pilot project is likely to be extended by three years to allow for further research, after which a decision will be made regarding the adoption of this approach into legislation.
Port of Gauteng’s integrated approach ensures South Africa can meet its National Development Plan commitments whilst creating a sustainable, efficient logistics ecosystem.