So says Justin Schmidt (Executive: Manufacturing, Renewable Energy and Transport Logistics at Absa Business Banking), when Dealerfloor approached him for comment on the new proposed establishment of the Port of Gauteng (PoG).

Developed by private company NT55 Investments, the PoG will sit at the junction of the N3, N12 and N17 highways and the Container Rail Corridor, placing it at the centre of South Africa’s transport network, according to the developers.

“The scale of the proposed investment in the PoG will ensure a knock-on effect for many sectors related to the project and for the users of the new transport rail and logistics structures such as warehouses. This will ensure a more efficient access to their respective services and markets.

“Freight by rail will have a positive outcome and will open up new opportunities for role players in the current way goods are transported and handles between the coast and inland,” Justin concludes.

The scale of the PoG:

South Africa’s automotive industry and logistics network are set for major change with the R50 billion Port of Gauteng (PoG), a 1 400-hectare inland logistics hub designed to transform the flow of freight, vehicles and goods between the coast and the country’s economic heartland.

The project’s White Paper (portofgauteng.co.za), describes the PoG as the country’s largest inland logistics hub, aimed at easing the burden on the Durban Gauteng freight corridor. Currently, less than 14 per cent of freight between these regions moves by rail, well below the National Development Plan’s 50 per cent target.

A strategic win for the automotive industry:

The hub will feature a world class car terminal, a container rail terminal and two flat rail lines for efficient container and vehicle handling. These are designed to support the import and distribution of both completely built up (CBU) vehicles and components.

Most imported vehicles currently arrive via Durban before being trucked inland, adding cost, congestion and risk. By integrating rail, the PoG offers a direct and safer alternative that could lower transport costs, shorten delivery times and enhance supply chain reliability.

According to the project’s developers, shifting customs clearance and container storage inland will ease congestion at the Port of Durban and enable faster processing for importers and distributors across the automotive value chain.

Boosting supply chain efficiency and reducing costs:

The automotive sector depends on just in time logistics for both manufacturing and vehicle distribution. The PoG’s inland location will allow suppliers, logistics operators and vehicle importers to move goods closer to production and consumption hubs before clearance or dispatch.

This could cut heavy truck traffic on the N3 by up to one third, improving road safety, reducing congestion and lowering emissions. Sustainability measures, including solar power generation, rainwater harvesting and recycling systems, align with national energy and environmental goals.

For importers, the port also offers a safeguard against delays at Durban. Vehicle shipments could be transported directly by rail to Gauteng for inspection, storage and delivery, freeing up valuable coastal space and reducing turnaround times.

Employment and economic growth:

Beyond logistics efficiency, the PoG promises substantial socio-economic impact. Once operational, it is projected by the developers to create around 50 000 permanent jobs, in addition to thousands during construction. Its economic ripple effects will reach warehousing, transport, manufacturing, e-commerce and parts supply sectors.

Sectors such as agriculture, manufacturing and online retail will benefit from faster and more reliable logistics. The PoG will be well positioned to manage this growth while accommodating vehicle imports and industrial cargo.

Rail revitalisation and industry confidence:

The project is expected to play a major role in revitalising South Africa’s rail freight network. During the Covid-19 pandemic, freight rail between Durban and Gauteng declined sharply, with train numbers dropping from around 80 per day to only 15 by 2023.

The PoG aims to restore industry confidence by introducing a modern intermodal hub built to international standards. It supports government efforts to enable private freight operators, boost reliability and create a more competitive logistics environment.

Financing and delivery outlook:

The Port of Gauteng is privately funded and does not rely on state financing. The White Paper calls for policy stability and a clear regulatory framework to encourage private investment and ensure sustainability.

Construction is expected to begin around 2027, with completion in phases. Investor confidence will depend on visible progress in rail reform, reliable power supply and effective public private collaboration.

A new era for automotive logistics:

For vehicle importers, assemblers and logistics firms, the Port of Gauteng presents an opportunity to redefine the country’s automotive logistics structure. By creating a purpose-built inland hub that integrates rail, road and customs functions, South Africa can cut logistics costs, strengthen competitiveness and improve reliability across the automotive supply chain.

If delivered as planned, the project could help establish Gauteng not only as South Africa’s manufacturing and commercial hub but also as a continental automotive gateway. It promises faster distribution from ship to showroom, greater sustainability and a more resilient freight system to support the next stage of the automotive industry’s growth.

• Additional reporting: Ecofin Agency, Engineering News, Farmer's Weekly SA, Freight News SA.