Why the UAE's logistics footprint matters to South Africa's export recovery

South Africa’s logistics sector has faced progressive challenges in the last decade, with the last four years seeing the national government declare this a crisis. However, the sector is now entering a new phase underpinned by capital flows through partnerships, investment on the back of announced reforms, and industry discussions on logistics reforms for South Africa’s future spearheaded by the Minister of Transport, Barbara Creecy. The question that now confronts the sector is whether the country’s planned reform can attract enough capital, competition and capabilities to convert its underperforming infrastructure into a competitive export platform. 

This positions the UAE as a unique partner for South Africa to watch. Emirati-based logistics firms which include DP World and AD Ports Group, are building integrated businesses spanning ports, inland logistics and trade corridors across South Africa, Mozambique, Tanzania, Angola and Egypt. This model potentially matters more for South Africa as the government opens freight rail to private operators, with plans to expand private participation in ports.

This shift should be treated for the opportunity that it really is, with deeper emphasis put on whether the concert of private capital, UAE’s operating expertise, and national reforms - are seen as assets to be deployed towards accelerating the strategy already in place -  The Freight Logistics Roadmap. According to Transnet’s 2025 audited results, freight rail volumes fell from 226.3 million tonnes in 2017/18 to 151.7 million tonnes in 2023/24. By 2024/25, however, the decline had begun to stabilise, with Transnet reporting that its recovery plan had curbed the deterioration in rail volumes.

The financial turnaround is similarly significant. Transnet’s net loss narrowed from R7.3 billion in 2023/24 to R1.9 billion in 2024/25, while revenue increased 7.8% to R82.7 billion and EBITDA rose 39.4% to R30.6 billion. The company also reported a rail network of approximately 30,400km, 1,911 operational locomotives and eight commercial ports. These figures matter because they change the investment conversation. South Africa is not starting from an abandoned logistics system. It is attempting to rebuild a large national network while changing the way that network is financed, operated and accessed.

The National Treasury in its 2024 Budget Review identified rail and ports as structural constraints, with operational blunders in freight and rail constraining economic activity and export potential. The reform by SA therefore has a clear economic objective - make logistics an enabler of growth. South Africa’s Department of Transport has moved from the principle of private-sector participation to actual allocation of access. Eleven private operators have met the initial application criteria and have been allocated 41 routes across six corridors, for operating periods of up to ten years. 

The Transnet Rail Infrastructure Manager (TRIM), introduced by Transnet to manage operations of its infrastructure rail network in 2023, estimates that these operators could add 20 million tonnes of freight annually from 2026/27, contributing to the government’s target of moving 250 million tonnes of freight by rail annually by 2029. Transnet’s own reform framework is explicit about the direction of travel: separate rail infrastructure from operations, introduce private train operators, establish regulated and non-discriminatory network access, encourage private-sector investment and expand private participation in ports.

The UAE–South Africa relationship already provides a substantial commercial foundation. According to the UAE Ministry of Foreign Affairs, bilateral non-oil trade reached approximately $8.5 billion in 2024, up 14% from 2023, and $3.93 billion in the first half of 2025. UAE investment in South Africa exceeded $2.5 billion in the first half of 2026, evidence the relationship is moving beyond trade towards investment and infrastructure cooperation.

The UAE's relevance is not simply financial capacity, but rather operating capability in its logistics firms. DP World’s foothold into South Africa was through the acquisition of Imperial Logistics, with local operations reportedly generating $6.24 billion in cumulative socioeconomic impact during 2022 and 2023.