South Africa is poised to benefit from a substantial investment of €300 million (R6 billion) announced by multinational logistics giant DHL, which is targeting its three business units across the continent. This investment comes as a result of improvements in Transnet’s operational performance, making South Africa an attractive location for expansion.
The head of DHL Global Forwarding in South Africa indicated that approximately €50 million of this investment will be allocated over the next five years. The positive changes observed in Transnet’s operations have reinforced the decision to expand, presenting a compelling business case for the logistics firm.
According to Business Day, despite the optimism surrounding the investment, there remains concern over the findings of the Container Port Performance Index (CPPI), a report developed by the World Bank and S&P Global Market Intelligence. This report highlighted South Africa’s ports as the weakest performers globally. Nonetheless, DHL’s experience shows a different picture, with record-breaking numbers emerging from South African ports in recent months, suggesting that past investments in infrastructure are beginning to yield results.
While the CPPI ranked South African ports poorly overall, it did note significant improvements at the Port of Cape Town, which saw the largest increase among more than 350 ports surveyed. The Port of Cape Town surged by nearly 240 points, while Coega (Ngqura) ranked fourth on the list of most improved ports, gaining 160 index points during the same period.
In terms of container handling, South Africa’s ports managed to process over 100,000 twenty-foot equivalent units (TEUs) in week 16 of the current financial year, reaching levels not seen since 2017/18. Significant improvements were noted at the Durban Container Terminal Pier 2, a key asset in Transnet’s port portfolio.
Transnet Port Terminals (TPT) is investing R4 billion in new equipment for the 2025/26 financial year, following an investment of R3.4 billion in the previous year. Notable equipment deliveries this year include a ship-to-shore crane at the Gqeberha Container Terminal, as well as 20 straddle carriers and over 40 forklifts at various terminals.
DHL has identified several areas for expansion, such as enhancing cold-chain logistics for agricultural and horticultural exporters, as well as bolstering its capabilities in life sciences and healthcare through specialised temperature-controlled transport. The supply chain unit is expected to leverage this investment to increase capacity and develop transport-led solutions, particularly in the healthcare sector, which demands temperature-sensitive logistics.
Overall, the demand for third-party logistics services continues to rise in South Africa, indicating a strong market for DHL’s investment and expansion plans.