South Africa’s freight and logistics sector is projected to register strong and sustained growth between 2025 and 2030. With a market size of USD 14.70 billion in 2025 and a forecast to reach USD 19.90 billion by 2030, the industry is primed for a compound annual growth rate (CAGR) of 6.24%.

South Africa stands as the most industrialized and diversified economy on the African continent, serving as a critical gateway to regional trade across Sub-Saharan Africa. At the heart of this role lies the country's robust freight and logistics market, a backbone that supports mining, agriculture, manufacturing, and a rapidly evolving e-commerce sector.

The South African freight and logistics industry encompasses a wide range of services, including transportation (road, rail, air, and sea), warehousing, courier and express parcel delivery, freight forwarding, and supply chain management. With its strategic coastal ports, expansive highway network, and well-developed rail corridors, the country plays a pivotal role in facilitating both domestic and international trade.

As the economy continues to diversify, the demand for integrated, technology-driven, and efficient logistics solutions intensifies. Government-led infrastructure investments, the rise of digital commerce, and the modernization of freight corridors are key enablers driving market growth. These dynamics are pushing logistics providers to scale operations, adopt innovative practices, and expand into underserved areas to capture growing market share.

Infrastructure Investments Boosting Capacity

South Africa is investing heavily in its transportation infrastructure to support future freight volumes:

The Transnet National Ports Authority pledges approximately USD 941.44 million by 2030 to upgrade key port facilities at Cape Town, Saldanha, and Mossel Bay.

Road transport infrastructure also sees significant investment, with a USD 379 million allocation in January 2024 for SANRAL road construction projects.

These efforts aim to improve capacity, reduce transit delays, and enhance service levels—crucial for increasing the market share of freight operators and logistics providers.

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Segmental Breakdown by End-User Industry

Wholesale & Retail Trade

This segment holds the largest market share, accounting for approximately 39% in 2024. Propelled by surging e-commerce demand:

The segment is estimated to reach USD 7.5 billion by end-2024.

E-commerce penetration is expected to reach 8.8% of total retail sales by 2025.

The entry of global players like Amazon is further catalyzing logistics requirements, shaping warehousing, distribution, and last-mile delivery dynamics.

Manufacturing

The manufacturing sector is the market's fastest-growing segment, projected to expand about 7% annually over 2024–2029. Key drivers include:

The South African Automotive Master Plan, aiming to grow vehicle production from 600,000 to 1.4 million annually by 2035.

Investments in advanced manufacturing technologies and infrastructure.

As production scales up, logistics demand for inbound components and outbound distribution is expected to surge, increasing the sector’s market share.

Construction, Agriculture, Oil & Gas/Mining

These sectors collectively contribute significant volumes:

Agriculture is benefiting from growth in food exports and technology-driven farming improvements.

Construction logistics is supported by government infrastructure initiatives and public‑private partnerships.

Pipeline transport is rapidly expanding, with the African Renaissance Pipeline project (USD 6 billion, 2,600 km, capacity of 18 bcm annually) set to complete between 2025 and 2026.

These industries are positioning to gain a rising share of the market through steady investment and policy support.

Mode-Specific Logistics: Market Share by Function

Road Freight & General Freight Transport

The total freight transport segment dominates with approximately 65% market share in 2024. Within that:

Road freight handles around 63% of total volume.

Public investment through SANRAL’s USD 379 million road projects signals continued reliance on trucking for bulk and parcel movement.

Major providers such as Freightdynamics (a Transnet subsidiary offering FTL, LTL, intermodal, warehousing, and forwarding) hold substantial shares in this segment.

Courier, Express & Parcel (CEP)

The CEP segment is the fastest-growing logistics function, popularized by rising e-commerce. Last-mile delivery expansion, security concerns, and digital innovations continue to fuel robust growth in this space.

Rail Freight

Rail remains essential for bulk commodities like coal and minerals, Transnet Freight Rail leads here. Despite challenges with ageing infrastructure, cable theft, and equipment shortages:

Transnet moved 151.7 million tons in the latest financial year.

Forecasts for 160–165 million tons in the year ending March 2025 suggest year‑on‑year growth of 5.5%–8.8%.

The government targets 250 million tons annual capacity within five years, and is enabling private-sector participation in freight rail to help reach this goal.

This places rail in a position to increase its market share in heavy haul corridors, albeit tied to modernization efforts and investment.

Pipeline Transport

Pipeline logistics, primarily for oil and gas, display the highest growth rate across transport functions, an estimated 12% annual growth from 2024 to 2029. Completion of the African Renaissance Pipeline and a suite of 15 government-led oil and gas projects between 2023 and 2027 are significant contributors.

Freight Forwarding & 3PL

The 3PL market in South Africa was estimated at USD 5.97 billion in 2024. Leading players, Bidvest, Kuehne+Nagel, DSV, Barloworld, and Onelogix, are strengthening capabilities through acquisitions and partnerships, such as Kuehne+Nagel’s acquisition of Morgan Cargo. This consolidation supports scale efficiencies, network reach, and service integration.

Strategic Outlook & Market Share Trends

E‑commerce as a Growth Catalyst

Surging online retail, now accounting for 8.8% of total sales by 2025, is reshaping logistics demand. Rising parcel volumes, warehousing space needs, and last‑mile capabilities are shifting the balance in market share across freight modes.

Public‑Private Infrastructure Partnerships

Port modernization projects and Transnet's rail privatization initiatives signal stronger collaboration between state and private players. By involving specialized logistics operators, South Africa aims to untangle infrastructure bottlenecks and capture a larger share of freight volumes.

Technological Adoption

Logistics providers are increasingly investing in:

Real‑time tracking and telematics

Warehouse management systems and robotics

Digital customer platforms

These efficiencies translate into cost savings, reliability improvements, and competitive market positioning.

Export-Driven Growth

With agriculture facing a target to raise food production by 50% by 2050, freight demand for exports will expand significantly. Manufacturing exports are aspirational to reach 40% of total output by 2030. These objectives are supported by infrastructure investments and logistics readiness.

Key Players & Competitive Landscape

Primary industry participants include:

DP World/Imperial Logistics

DSV A/S

Kuehne+Nagel

Laser Group

Savino Del Bene

Alongside state operators like Transnet and Freightdynamics, these firms compete across key segments, CEP, road, rail, warehousing, and forwarding. Their continued expansion of logistics footprint will shape market share distribution through 2030.

Conclusion

With a projected rise from USD 14.70 billion to USD 19.90 billion by 2030 and a strong CAGR of 6.24%, South Africa’s freight and logistics market stands poised for significant transformation. Infrastructure investment, e‑commerce acceleration, segmental growth, and private-sector participation are central to this evolution.

Logistics providers that diversify across road, rail, pipeline, and CEP, while embracing digitization and partnerships, will attract larger shares of the expanding market. As the country gears up for higher production and trade, the freight and logistics sector will play an instrumental role. Both local and global stakeholders will benefit from aligning strategies with these emerging growth engines, ensuring success in the years ahead.

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