Off the Rails or on Track? Implications of Transnet’s 15-Year Exemption

In this post, authors Matthew Freer & Michael Williams (African Antitrust) look at South Africa’s bold new regulatory intervention aimed at reviving its failing logistics and freight infrastructure. On 8 May 2025, the government implemented the Block Exemption for Ports, Rail and Key Feeder Road Corridors under the Competition Act, signaling a major shift in policy. Spearheaded by Trade, Industry and Competition Minister Parks Tau, this 15-year exemption allows firms across the logistics value chain to collaborate—within limits—in order to address the country’s critical transport bottlenecks, without falling foul of competition laws. The exemption reflects the government’s recognition that systemic inefficiencies in transport are severely undermining the economy, costing the country up to R1 billion per day.

The exemption comes against the backdrop of decades-long decline in South Africa’s logistics infrastructure. The rail network, dating back to the early 20th century, has suffered from underinvestment, equipment failures, vandalism, and weather damage, while ports like Durban and Cape Town are plagued by aging equipment and congestion. Previous reform efforts—including partial privatisation—have largely failed, hampered by poor project execution and public resistance. The government is now banking on structured public-private partnerships to drive infrastructure upgrades and boost operational efficiency, with the block exemption acting as a legal mechanism to facilitate targeted collaboration among firms.

Legally, the exemption is made possible under Section 10(10) of the Competition Act, which allows the Minister to approve exemptions in the public interest. While South Africa’s competition law typically prohibits coordination between competitors—especially on pricing and market allocation—the exemption permits certain forms of cooperation, such as joint scheduling, shared logistics infrastructure, and data-sharing, provided they do not involve price-fixing or exclusionary conduct. Each proposed collaboration must still be individually approved by the Competition Commission, ensuring oversight while enabling urgently needed structural reform of the logistics sector…

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