A recent report by Verto identifies weak port and rail infrastructure as the biggest barrier to trade in South Africa, with congestion and inefficiencies particularly harming perishable agricultural exports.
Vitol is backing a $3 billion LNG power plant at the Port of Durban to help shift the country away from coal and supply gas-fired power to the national grid.
Cyril Ramaphosa has pledged new public–private partnerships in ports and rail to modernise infrastructure while preserving public ownership.
A recent report has identified weak port and rail infrastructure as the single biggest barrier to trade in South Africa, where talks are underway to build a major liquefied natural gas (LNG) power plant on the port of Durban – the country’s busiest container terminal.
The report by cross-border payments company Verto highlighted inefficiency in port operations, equipment breakdowns, rising demurrage costs, and capacity constraints as the most prevalent challenges to South African trade.
Global commodity trader Vitol announced on Monday, 19 February, that it backs the construction of a $3 billion LNG power plant in the port of Durban. The port of Durban, which carries around 4,500 commercial ports each year, is over 200 years old.
The Vitol-backed project aims to provide electricity to the country’s national grid through imported LNG and use LNG to power high-capacity turbines – contributing to the energy transition.
The project is still seeking regulatory approvals and navigating financial frameworks, but for South Africa, gas is a crucial step away from coal, which supplies most of the coastal country’s electricity.
By supporting this project, Vitol aims to gain a strong foothold in a market targeting 16 gigawatts of new gas generation by 2039. Ports can be optimal for such projects; they can reduce transport costs and streamline energy imports and exports.
South Africa’s Transnet National Ports Authority is also involved in the project, aiming to take care of port infrastructure and the logistics of the development.
Back in November 2025, Transnet and the French Development Agency (AFD) announced a partnership supported by the European Union (EU), targeted at decarbonising South Africa’s state-owned ports and railways. The agreement included a $300 million loan from AFD.
While LNG isn’t decarbonised, it can operate as a ‘bridge fuel’ to lower emissions by replacing coal and powering clean energy products.
South African agricultural exports are also projected to surpass $13.7 billion in 2026. The sector grew by 10% in the past year, with leading products being berries, grapes, citrus, nuts, apricots, and cherries. However, frequently congested ports continue to disrupt trade flows, serving as a particularly costly burden for easily-perishable agricultural goods.
The power plant initiative and growing food exports make logistical polish essential for the port of Durban, with crucial implications for both agricultural and energy commodities trading in South Africa.
Addressing the outdated infrastructure, “Later this year, we will initiate major public-private partnerships in our port terminals and rail corridors through a concession model that preserves public ownership while mobilising private investment and expertise,” said South African President Cyril Ramaphosa, earlier this week.