South Africa’s first fully operational intermodal freight village in the KwaZulu-Natal town of Estcourt is actively addressing inefficiencies and congestion along the road freight corridor between Durban and Gauteng. It is now set for a multi-billion-rand expansion that will help contain logistics costs and improve competitiveness for local manufacturers, says EIT Group CEO Wessel Jacobs.
A model inspired by European freight villages
The freight village is modelled on facilities in Eastern Europe. It functions as a multi-mode logistics centre offering transport solutions and value-added supply chain services for national and international cargo. It currently caters for containerised goods, with scope for bulk commodities.
A catalyst for regional growth and cost reduction
The expanded freight village is expected to create jobs and stimulate growth in Estcourt, aligning with government’s economic recovery strategy. It could also reduce transport costs to South Africa’s main port by up to 50%, significantly improving the global competitiveness of local manufacturers, says Chief Financial Officer, Manka Sebastian.
Sebastian highlights the importance of logistics efficiency. “In Europe, transport costs make up 10% of imports and 8% of exports. In Africa, 45% of our import costs come from transport, and 35% of our export costs do too. If we make logistics 30 to 50% more cost-efficient, we could nullify punitive tariffs imposed by the Trump administration.”
Strategic location at a key logistics junction
The Estcourt intermodal freight village sits on the former Masonite manufacturing site. Its location along the N3 and the rail corridor makes it an efficient point on the route: 567km by rail from City Deep and Sentrarand in Gauteng, and 176km from the Durban Container Terminal.
Bridging the gap between road and rail
The EIT Freight Village addresses two major logistics challenges: an ageing rail network and an overloaded road system. Around 7 000 trucks travel the N3 daily, moving 27.5 million tons of freight each year. Rail accounts for less than 14% of freight transport.
The system allows goods trucked from Gauteng to transfer to rail at Estcourt for the final stretch to Durban. Imports follow the reverse route.
Jacobs says avoiding the final leg of the journey by truck, which is marked by steep inclines, high fuel costs and delays, accounts for half of total transport costs. Shifting this section to rail reduces congestion and improves efficiency.
Cost advantages and existing infrastructure
Warehousing and essential infrastructure in Estcourt cost far less than in major city centres. The former Masonite site offered an existing rail link that has been fully refurbished. The first phase of the development is complete, and the freight village has been fully operational since March 2024.
Major expansion plans underway
Jacobs confirms that expansion is now progressing. Terminal one, currently 60 000 square metres, will be enlarged. EIT has the option to extend onto land on the other side of the rail line, creating a 500-hectare site for a second terminal. Terminal one will be used for clean cargo, and terminal two for minerals and other cargo types.
EIT’s first test train ran in November 2023, and operations began officially in March 2024. Negotiations with Transnet Freight Rail have secured three weekly train slots, with plans to increase this to three trains per day soon.
Strong public-private collaboration
Sebastian notes the strong relationships cultivated with the public and private sectors. Security teams are on call for train stoppages, and ongoing work with Transnet Freight Rail ensures challenges are addressed quickly.
“To date, we are yet to miss a single vessel at the port,” Jacobs says.