Port and rail parastatal Transnet and government cannot “go it alone” to repair South Africa’s strained logistics network, says South African Association of Freight Forwarders (SAAFF) CEO Dr Juanita Maree.
“Our current ports and rail model is, at best, archaic, compared to international standards, while it also fails the country’s socioeconomic growth and development goals.”
Maree says South Africa “desperately needs” a public–private partnership (PPP) model that will create jobs and attract “much-needed” investment in the logistics sector and the economy.
“This is necessary for South Africa Inc.”
Maree points out that the rail sector’s underperformance in 2022 constrained economic growth by 5.3%, while port inefficiencies cost the economy R46-billion directly and indirectly.
She notes that the concepts of time and cost are intricately linked in the logistics system, with each additional hour adding costs, while also placing unnecessary strain on the logistics chain.
“An improved logistics performance increases the efficiency in trading by reducing the time and cost to trade, which could then result in an increase in the volume of trade, which, ultimately, spills over into economic growth and socioeconomic development.”
SAAFF believes that the South Africa logistics system needs at least R200-billion in investment.
However, the good news is that a rejuvenated system could potentially create 55 000 additional jobs in the rail and ports sectors, while also generating R55-billion in additional tax revenue a year.
“It is no longer government or the private sector. It needs to be a collective culture to fight for SA Inc,” says Maree.
“Fortunately for SA Inc, a roadmap is currently being developed by the Operation Vulindlela team in the President’s office,” she adds.
“Further, considerable progress has been made in advancing joint action between business and government in the transport and logistics space.
“We must stabilise and improve operational performance on key trade corridors, mobilising private-sector resources and accelerating the implementation of the National Rail Policy to close the capacity gap.
“Fortunately, work is under way to immediately align and integrate business efforts into government's Freight Logistics Roadmap and urgently enable the development of work plans, deliverables and timelines, while also integrating the private sector into the recently formed National Logistics Crisis Committee,” says Maree.