South Africa’s automotive industry is a vital driver of the national economy, accounting for approximately 15% of the country’s exports and generating significant employment across manufacturing hubs. Major automotive players like Ford Motor Company Southern Africa (FMCSA) and Volkswagen (VW) rely on efficient logistics to connect their production centres in Gauteng to global markets, including Germany, the United Kingdom, and the United States. However, the sector faces logistical challenges. Congestion at the Port of Durban, increasing road transport costs, and environmental concerns have underscored the need for a transformative solution. In response, Transnet Freight Rail and the Industrial Development Corporation, alongside leading automakers, initiated Project Ukuvuselela—a bold plan to modernize South Africa’s rail infrastructure and provide an efficient alternative to road freight for automotive exports. 

Large infrastructure projects like Ukuvuselela demand significant investment and coordination across stakeholders. Comprehensive feasibility assessments are essential to evaluate the financial, economic, and sustainability of such projects. These studies provide policymakers and stakeholders with critical data to guide decision-making, ensuring the efficient allocation of resources and maximizing benefits for all involved parties. To this end, Transnet has partnered with Cambridge Resources International Inc. (CRI) to assess the project's financial and socio-economic impacts. 

CRI assessed the financial, socio-economic, and operational impacts of the project. This includes analysing projected revenues, cost structures, savings from reduced road congestion, extended road infrastructure lifespan, and environmental benefits from lower carbon emissions. The study examines the financial and non-financial benefits to key stakeholders, including automotive manufacturers like Ford and VW, Transnet Freight Rail, and the South African National Roads Agency Limited (SANRAL), ensuring that the project delivers value across the entire supply chain. A critical component of the feasibility study was determining an optimal tariff structure that balances the financial sustainability of the project with affordability for key stakeholders, particularly automotive manufacturers like Ford and VW. By analysing various tariff scenarios, CRI assessed the impact on project revenues, stakeholder costs, and overall economic benefits. This analysis ensures that the chosen tariff structure supports the project’s financial viability while minimising financial strain on users, ultimately promoting long-term collaboration and efficiency within the automotive logistics chain. Potential risks—such as cost overruns, operational inefficiencies, or tariff sensitivities—are identified and mitigated through robust sensitivity analyses, ensuring the project’s resilience and long-term viability.