Private investor’s role in logistics renewal spotlighted

JOHANN NELL Nell says that developing infrastructure and inland ports that host road and rail nodes, plays an important role in reforming logistics
In an opinion piece, real estate investment trust Redefine Properties national asset manager and development head Johann Nell noted that the transport and shipping narratives in South Africa are centred on renewal and revitalisation.
“In 2025, Transport Minister Barbara Creecy announced six new targets that would guide the department in its efforts to improve passenger, freight and logistics systems. These targets include carrying 250-million tonnes of freight on the Transnet network by 2029 and improving ship loading and unloading speeds to meet the international benchmark of 30 gross crane moves an hour.”
Additionally, National Treasury raised R11.8-billion through South Africa’s first Infrastructure and Development Finance Bond, which forms part of a broader budget plan to allocate R1-trillion to public infrastructure over three years.
Nell also observed that the nation’s freight and logistics market is expected to reach nearly $20-billion by 2030, growing at a compound annual growth rate of 6.24%.
However, he commented that, while freight along Africa’s biggest railway system has improved, the system continues to face challenges such as equipment shortages and maintenance backlogs.
The Port of Durban, “the largest and busiest shipping terminal in sub-Saharan Africa”, was ranked as the worst port in the 2024 World Bank Container Port Index, even if there has since been progress in improving operational and capacity-related challenges.
“What is common across all reform efforts is the input and attention of the private sector. In December 2025, South Africa received its largest-ever private rail investment valued at R3.4-billion – the result of Transnet opening the national network to private operators. Around the same time, Transnet also signed South Africa’s first port-privatisation deal, which will increase the capacity of the Port of Durban’s Container Terminal Pier 2, reduce costs and improve service quality.”
He noted that reforming logistics is not only about strengthening and decongesting freight corridors but also developing infrastructure and inland ports that host integrated road and rail nodes, and industrial manufacturing and warehousing facilities.
Case in Point
“One of the leading examples of private funding propelling South Africa’s logistics push centres around Cato Ridge DC, the country’s first large-scale, privately-funded freight corridor development.
“Located just 52 km from the Port of Durban, the development is home to the recently launched Insimbi Ridge Logistics Precinct, which introduces new inland staging and intermodal capacity and forms part of the KwaZulu-Natal provincial government’s plans to integrate private investment into critical infrastructure.”
Occupying 500 ha of developable land, Cato Ridge DC is an “essential node” in the KwaZulu-Natal–Gauteng corridor. The precinct offers “practical features” such as large yard spaces and scalability for multi-tenant occupation, which are essential across all industries, but especially the fast-moving consumer goods and e-commerce industries.
“Thanks to the level of integration, every building and facility in the precinct serves as a strategic business asset; a cog in a well-oiled machine that enables individual enterprises and local and provincial economies to grow. With every container that passes through Cato Ridge DC and every item that is dispatched to its destination, South Africa takes a step further in rebuilding trust and confidence in its ability to move people and goods.”
Nell commented that, from a property perspective, the success of precinct developments such as Cato Ridge DC depends on their ability to effectively support role-players in the materials handling and merchant space. “Functional, secure and efficient warehouse facilities in close proximity to port infrastructure have proven to be an intrinsic element in the value chain.”
Located close to the N3 highway, Cato Ridge DC meets a spectrum of supply chain requirements. The 50 333 m2 cross-docked modern logistics fulfilment centre “competes with newly developed warehouses” and is available at “a significant discount” to new development rentals.
With Redefine’s national network of industrial properties, the group is well positioned to serve as a national logistics warehouse partner, bringing to market spaces that support growing public and private capital investments and integrate with national road and rail freight networks.
“It is inspiring to witness how [the] Department of Transport, and the nation at large, continues to spearhead the transformation of national infrastructure throughout 2026. By prioritising the development of world-class facilities, we are actively building a more prosperous future,” Nell concluded.
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