With the N3 toll concession set to expire in 2029, South Africa faces a critical decision point on how to reshape container transport. This is the first installment in a two-part series.
Media and consultants showed a keen interest in the presentation. © Cold Link Africa
At the recent Port of Gauteng presentation, developer Francois Nortje outlined three scenarios for the country’s future freight landscape – each with direct implications for the cold chain, where efficiency, speed, and reliability determine the value of perishable cargo.
Current inefficiencies in container transport
Today, 85% of containers entering South Africa are longer units, while only 15% are the shorter 6m or 12m boxes. Yet the country’s truck regulations cap vehicle length at 22m, meaning most longer containers move inefficiently – often transported singly on 16m or 17m trucks. For cold chain operators, this inefficiency translates directly into higher costs and longer exposure times for temperature-sensitive goods.
Enter Performance-Based Standard (PBS) trucks – 30m vehicles capable of carrying two 12m containers together. Nortje argues that deploying PBS trucks could immediately cut the number of vehicles on the N3 while sharply lowering unit transport costs. For perishable goods, this promises shorter transit times, fewer transfers, and improved product integrity.
Option 1: Free market efficiency – but at a cost to rail
The first option proposes opening the corridor fully to PBS trucks, while converting tolls from a profit-driven model to cost-recovery only once the concession ends. For refrigerated cargo, this would slash costs, reduce delays and expand access to efficient long-haul road transport.
But there’s a risk: rail would be priced out of the market. Nortje warned that if left unchecked, this ‘survival of the strongest’ scenario could wipe out rail viability, leaving South Africa with a road-dominated system that increases long-term risks for the cold chain – such as congestion, road safety issues, and vulnerability to fuel price shocks.
Option 2: Government subsidy to keep rail competitive
The second option builds on Option 1 but injects R3–R5-billion annually in government subsidies to keep the rail option viable. This would create a dual system where both efficient PBS trucks and subsidised rail compete for cargo, with exporters – particularly those in agriculture – benefitting from reliable alternatives.
For the cold chain, this dual system ensures resilience. Fresh produce, pharmaceuticals and frozen goods could shift between rail and road depending on demand spikes, infrastructure disruptions or cost differentials, ensuring continuity of service.
