Written by Gallagher Convention Centre, South Africa
Driving Regional Connectivity, Smart Mobility, Freight Efficiency, and Infrastructure-Led Economic Growth
Panel Discussion 1
From Zone to City: How Infrastructure and Transport are Shaping the Next Generation of Special Economic Zones (SEZs)
The panel explored the role of infrastructure, transport systems, and regional connectivity in the development of modern Special Economic Zones (SEZs).
A key concern raised was that road and rail infrastructure have historically operated in silos. Panelists emphasized the need for stronger coordination between agencies, government departments, and infrastructure stakeholders to create integrated transport and logistics ecosystems.
Dr Bheka Zulu
Chief Executive Officer
Tshwane Automotive Special Economic Zone
Dr Zulu highlighted the importance of infrastructure in enabling successful SEZs.
Key Insights
Reliable power supply remains critical for attracting investors.
Fibre and digital connectivity are becoming essential infrastructure requirements.
Modern SEZs should evolve beyond industrial parks and become fully integrated ecosystems.
Infrastructure development should support environmentally sustainable and carbon-friendly industries.
Skills development is a critical driver of productivity and competitiveness.
The Tshwane Automotive SEZ continues to produce world-class automotive products for local and international markets.
Vision for the Future
Dr Zulu noted that future SEZs should:
Develop into smart cities.
Integrate residential, industrial, and commercial functions.
Create communities where people want to live, work, and invest.
Foster loyalty and long-term economic participation.
Martin Mahosi
Chairperson: Technical and Infrastructure Committee
Musina-Makhado Special Economic Zone
Mr Mahosi discussed the opportunities and challenges facing the Musina-Makhado SEZ.
Key Insights
Although Musina is geographically remote and located in a dry region, it is strategically positioned near major trade routes and ports.
Investors require confidence in business continuity and infrastructure reliability.
SEZs should be catalysts for creating new cities, industrial hubs, and trading centres.
Infrastructure readiness is essential to attract long-term investment.
Key Message
South Africa must position itself ahead of development trends to remain competitive and attract global investors.
Tabulation Sithole
Senior Manager: Business and Investor Support
Dube TradePort Special Economic Zone
Mr Sithole was part of the team responsible for drafting legislation supporting trade and infrastructure development.
Key Insights
Successful SEZs require strong leadership.
Collaboration between national government, provincial government, municipalities, and state-owned entities is essential.
Government should act as an enabler of investment rather than a barrier.
Infrastructure planning and policy alignment are critical to SEZ success.
Andila Stemela
Divisional Executive: Strategy, Planning and Strategic Investments
National Empowerment Fund (NEF)
Mr Stemela discussed the future evolution of Special Economic Zones.
Key Insights
Future SEZs must be fully integrated economic ecosystems.
They should support complete value chains rather than isolated industries.
Innovation, collaboration, and knowledge-sharing must become central features of SEZ development.
Investor participation should translate into meaningful community development and economic transformation.
Key Message
SEZs of tomorrow must become centres of innovation, manufacturing, creativity, and skills development.
Panel Discussion Summary
Several important themes emerged:
Infrastructure Drives Competitiveness
The example of Singapore was highlighted:
Significant investment in logistics infrastructure has enhanced competitiveness.
Free trade zones and efficient port operations support global trade.
Ships can remain in port for up to nine days without excessive penalties, allowing efficient cargo movement.
South Africa's Challenges
Approximately 3,000 kilometres of rail infrastructure face operational challenges.
Manufacturing output is declining.
Infrastructure bottlenecks increase the cost of doing business.
Key Questions Raised
Can SEZs become financially self-sustaining?
How can provinces better connect their SEZs?
How can infrastructure support manufacturing growth?
How can transaction costs and cargo movement times be reduced?
Panel Discussion 2
Road and Rail Connectivity: Creating an Efficient Freight System
The second panel focused on improving freight movement and balancing cargo between road and rail transport.
Ian Bird
Senior Executive
Business Unity South Africa (BUSA) / Business for South Africa
Key Insights
Significant mining and bulk cargo volumes should be moved by rail rather than road.
South Africa requires more efficient logistics systems to stimulate GDP growth.
Greater investment in rail infrastructure is needed.
Key Message
"We need to move freight volumes from road to rail."
Kabelo Rabotho
Director: Micromobility
Stellantis
Key Insights
Goods should be transported using the most efficient transport mode available.
Cities are becoming increasingly congested.
Congestion increases costs and reduces productivity.
Better integration between ports, roads, and rail systems is required.
Warwick Lord
Chairman and CEO
Cato Ridge Inland Port Association
Key Insights
Logistics costs account for approximately 15% of product costs.
Many trucks are competing for access to the same ports, creating congestion.
Inland ports can help reduce pressure on major ports.
Key Message
"South Africa must get its logistics and supply chain systems right."
Russell Baatjies
Chief Executive
Transnet Freight Rail
Key Insights
A single commercial model cannot serve all freight categories.
Different freight types require different operating models.
Containers remain expensive to move and require innovative solutions.
Recommendation
Develop specialised freight solutions based on cargo type and market requirements.
Tshepo Kgobe
Chief Executive Officer
Gautrain Management Agency
Key Insights
Gauteng experiences significant freight traffic congestion.
Every major freight route passes through Gauteng.
Traffic congestion impacts national economic performance.
Rail remains the most efficient long-distance transport mode for freight.
Key Question
How can existing rail networks be optimised to move larger freight volumes more efficiently?
Mawethu Vilana
Member
Chartered Institute of Logistics and Transport South Africa (CILTSA)
Key Insights
Approximately 50% of logistics activities are administrative.
Administrative inefficiencies must be addressed.
Road and rail should complement rather than compete with one another.
Key Panel Conclusions
Strengthen regional corridors, including the Mozambique and Zambia trade routes.
Increase private sector participation.
Improve port infrastructure.
Reduce logistics costs.
Leverage digital technologies.
Understand customer requirements.
Identify and address factors making rail transport expensive.
Shift heavy freight volumes from road to rail wherever feasible.
Smart Mobility Through Intelligent Traffic Management
Mpho Makgalemele
Business Development Executive
Kapsch TrafficCom
Presentation Theme:
Smart Mobility Through Intelligent Transport Systems
Key Insights
The goal is to achieve:
Safer mobility.
Reduced congestion.
Improved travel times.
More efficient road networks.
Kapsch TrafficCom has implemented smart mobility solutions in more than 50 countries.
Technology Solutions
AI-powered traffic management.
Dynamic road signage.
Tolling systems.
Real-time traffic monitoring.
Intelligent traffic redirection systems.
The Connected Transport Ecosystem
PowerFleet
Topic:
How Integrated Platforms, Telematics and Operational Systems are Reshaping Transport Visibility and Decision-Making
Current Challenges
Fragmented transport systems create:
Poor planning.
Limited visibility.
Inefficient execution.
Reduced operational control.
Benefits of a Connected Ecosystem
Route optimisation.
Vehicle selection based on operational requirements.
Compliance verification.
Dynamic route adjustments.
Live GPS tracking.
Driver coaching and monitoring.
Fuel consumption management.
Reduced idle time.
Driver performance analytics.
Improved customer communication.
Proof of delivery verification.
Enhanced operational transparency.
Future Trends
AI and predictive analytics will enable proactive communication with customers, reduce disputes, and improve service delivery.
Rebuilding South Africa's Freight Rail Network
Transnet Rail Infrastructure Manager (TRIM)
Overview
TRIM was established in April 2025 as an independent infrastructure manager responsible for rail network access, infrastructure stewardship, safety, security, and capacity allocation.
Transnet Mandate
To lower the cost of doing business in South Africa and enable economic growth through improved rail infrastructure.
Key Challenges
Rail theft and vandalism.
Funding constraints.
Infrastructure deterioration.
Industry affordability concerns.
Network Statistics
TRIM manages approximately 21,232 kilometres of rail network.
Funding and Investment
R250 million has been allocated to support network improvements.
An additional R10 billion has been allocated to strengthen rail security.
Strategic Priorities
Improve network reliability.
Restore rail performance.
Upgrade infrastructure.
Increase private sector participation.
Private Sector Participation
TRIM has released Requests for Information (RFIs) and Requests for Proposals (RFPs) to attract investors and operators.
Potential participants can access requirements through:
Network Statement Version 4.
Application documentation available through TRIM.
All applications undergo rigorous technical and financial assessments.