Wesgro Business Outlook Event Highlights Role of Logistics in South Africa’s Economic Growth

At Wesgro’s annual Business Outlook event in Cape Town, titled “Logistics for Growth and the Future,” industry leaders and government officials underscored the crucial role of transport and logistics in boosting South Africa’s economy. Hosted at Nasdak in Media24’s building, the event focused on the need for collaboration, modern infrastructure, and stronger public-private partnerships to enhance logistics efficiency and competitiveness.

Growth Opportunities in Western Cape’s Logistics Sector

Wesgro, in collaboration with the Southern African Association of Freight Forwarders, unveiled its latest Business Outlook on Logistics in the Western Cape report. This publication highlights several exciting growth areas, including the rapid expansion of air cargo, which is now surpassing ocean freight as businesses seek faster ways to reach markets. The report also emphasizes the Western Cape’s commitment to sustainable and “smart logistics,” incorporating digital innovations that streamline multi-modal transportation and enhance operational flexibility.

Calls for Immediate Action on Port and Rail Infrastructure

Keynote speakers at the event stressed the urgency of improving South Africa’s logistics infrastructure to fuel economic growth. Western Cape Premier Alan Winde emphasized the importance of efficient ports and called for action to make the Western Cape a top performer in global port efficiency rankings.

Provincial Minister Dr. Ivan Meyer highlighted the job creation potential of an efficient logistics system. He noted that increasing exports by just 5% could generate nearly 23,000 new jobs in the Western Cape, according to Stellenbosch University’s Bureau of Economic Research. “Our harbors are essential for agriculture and other local industries,” he added, urging quick improvements.

Cape Town’s Alderman James Vos also emphasized the value of private sector involvement in port operations. He argued that streamlining visa requirements and expanding air access could attract global talent and investment, giving Cape Town a competitive edge.

Transnet’s Plan for a Future-Ready Logistics System

In a video message, Transnet CEO Michelle Phillips addressed the challenges facing South Africa’s logistics sector, pointing to the need for modernization and partnerships with private companies. Transnet, the state-owned port and rail operator, is prioritizing infrastructure investments, expanding private access to rail networks, and improving port operations to enhance efficiency.

President Cyril Ramaphosa, in a recent newsletter, also highlighted the work of the National Logistics Crisis Committee (NLCC), which aims to resolve bottlenecks in key transport corridors. He mentioned the upcoming Freight Logistics Roadmap, which focuses on improving network security, operational efficiency, and infrastructure investment. By 2029, the government hopes to transport at least 250 million tonnes of freight by rail, aiming to reduce the reliance on road transport and lower logistical costs for businesses.

Public-Private Partnerships: Key to Sector Transformation

Wesgro CEO Wrenelle Stander emphasized the importance of a strong logistics network to support South Africa’s export-driven economy. With key logistics hubs like the Port of Cape Town and Cape Town International Airport, Stander highlighted how a modern, efficient logistics system requires robust public-private partnerships to tackle infrastructure challenges and keep goods moving seamlessly.

Panel discussions included insights from top industry leaders like Business Leadership South Africa CEO Busisiwe Mavuso, Transnet’s Dr. Andrew Shaw, and experts from DHL and DP World. These leaders stressed that sustainable practices, such as reducing the logistics sector’s carbon footprint, will be essential as South Africa’s economy grows.

Prioritizing Sustainability in the Logistics Sector

The panelists also discussed the importance of integrating sustainable practices into logistics to minimize environmental impacts. One session titled “Investing in the Future: The Role of Public-Private Partnerships in World-Class Logistics Infrastructure” explored solutions for improving port efficiency in Cape Town. Experts from Transnet and Stellenbosch University joined the discussion, underlining the value of strategic investments to create a resilient and future-ready logistics sector.

A Call for Action and Collaboration

The event concluded with remarks from Exporters Western Cape chairperson Terry Gale, who reinforced the event’s core message: collaboration is essential to strengthening South Africa’s logistics sector and unlocking the country’s economic potential.