The role of public-private partnerships in developing logistics infrastructure

Abstract

South Africa’s rail logistics infrastructure has deteriorated over the years, and the development of reliable logistics infrastructure is important to its economic competitiveness and trade facilitation. However, persistent funding and capacity constraints within the public sector have resulted in an increased reliance on public–private partnerships (PPPs) as strategic instruments for delivering key infrastructure projects. This research sought to get a better understanding of the role of PPPs in developing logistics infrastructure in South Africa by focusing on their forms, challenges, adoption dynamics, and funding mechanisms. The research followed a qualitative, exploratory approach to get insights into the experiences and perspectives of 19 individuals operating in the South African logistic infrastructure space from both public and private sectors. Drawing on existing literature that provided insights from other developed and developing countries, the study positioned PPPs as a solution within the broader context of critical infrastructure resilience and socio-economic development. The findings revealed that PPPs can enhance efficiency, cost effectiveness, drive innovation, and deliver infrastructure projects in time and within budget through risk sharing and leveraging private sector expertise. However, the success of PPPs in developing countries is often constrained by institutional weaknesses, political uncertainty, and limited access to funding. Therefore, sustainable PPP implementation in South Africa requires transparent governance frameworks, adaptive procurement models, and integrated financial instruments that align public sector accountability for socio-economic development goals with private sector investment incentives ensuring a return. Moreover, the study contributes to the discussion on sustainable infrastructure financing by demonstrating how PPPs can reinforce the resilience and performance of South Africa’s rail logistics infrastructure.