• NT55 plans $2.9B Gauteng dry port to ease freight bottlenecks
• Project targets 2.8M units annually, with 2027 construction start
• South Africa rail reforms aim to boost private sector investment

NT55 Investments has unveiled a 50 billion rand (approximately $2.9 billion) investment plan for its rail-integrated Gauteng dry port project, an inland logistics hub intended to alleviate chronic supply chain constraints across South Africa.

Construction on the inland platform is slated to begin in 2027. Planned facilities include a Roll-on/Roll-off (Ro-Ro) vehicle terminal, a container terminal, and 2.2 kilometers of internal rail lines. The project aims to handle 2.8 million units annually, with a long-term goal of increasing that flow to 11.2 million units, according to the project’s white paper released by NT55.

The dry port site is strategically located at the junction of state-owned logistics firm Transnet’s container freight rail corridor and the major highways linking Durban to Gauteng. The hub is expected to play a critical role in optimizing rail freight and decongesting roadways.

Current logistical challenges mean that rail accounts for less than 14% of freight volumes on the vital Durban-Gauteng corridor, far below the National Development Plan 2030 target of 50%.

The underutilization of rail potential is a widespread issue in South Africa, driven by aging infrastructure, cable theft, a locomotive shortage, and Transnet’s 130 billion rand debt burden. Because the national logistics chain was initially built around the railway network, this situation has severely impacted South Africa’s ports, which have faced persistent congestion for several years.

Major South African ports rank near the bottom of the Container Port Performance Index (CPPI), according to the World Bank and S&P Global.

However, a national reform plan to liberalize the rail sector is underway. Recent reports from the South African Transport Ministry indicate that 11 private companies and consortia are competing for slots on Transnet’s network. The move to private sector participation is projected to add 20 million tons of annual capacity, approximately 11% of current volumes, and stimulate up to 100 billion rands in private investment for wagons, locomotives, and sidings over the next decade.

Henoc Dossa