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.<\/p>\n
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.<\/p>\n
Cyril Ramaphosa has pledged new public\u2013private partnerships in ports and rail to modernise infrastructure while preserving public ownership.<\/p>\n
A recent report<\/a> 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) <\/a>power plant on the port of Durban \u2013 the country\u2019s busiest container terminal.<\/p>\n 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.<\/p>\n Global commodity trader Vitol announced on Monday, 19 February, that it backs the construction of a $3 billion<\/a> LNG power plant in the port of Durban. The port of Durban, which carries around 4,500<\/a> commercial ports each year, is over 200<\/a> years old.\u00a0<\/p>\n The Vitol-backed project aims<\/a> to provide electricity to the country\u2019s national grid through imported LNG and use LNG to power high-capacity turbines \u2013 contributing to the energy transition.\u00a0<\/p>\n 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\u2019s electricity.\u00a0<\/p>\n By supporting this project, Vitol aims to gain a strong foothold in a market targeting 16 gigawatts<\/a> of new gas generation by 2039. Ports can be optimal for such projects; they can reduce transport <\/a>costs and streamline<\/a> energy imports and exports.\u00a0<\/p>\n South Africa\u2019s Transnet National Ports Authority is also involved in the project, aiming to take care of port infrastructure and the logistics of the development.\u00a0<\/p>\n Back in November 2025, Transnet and the French Development Agency (AFD) announced<\/a> a partnership supported by the European Union (EU), targeted at decarbonising South Africa\u2019s state-owned ports and railways. The agreement included a $300 million loan from AFD.<\/p>\n While LNG isn\u2019t decarbonised, it can operate as a \u2018bridge fuel<\/a>\u2019 to lower emissions by replacing coal and powering clean energy products.\u00a0<\/p>\n South African agricultural exports are also projected to surpass $13.7 billion<\/a> in 2026. The sector grew by 10%<\/a> 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.\u00a0<\/p>\n 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 <\/a>trading in South Africa.\u00a0\u00a0<\/p>\n