SA must change or face logistics crisis

A domestic intermodal system
where logistics is more efficient,
with more collaboration between
role-players and stakeholders is
crucial to the country.
According to Professor Jan
Havenga from the Logistics
Department at the University of
Stellenbosch, a new system will not
only change how freight is moved
domestically but also address
escalating logistics costs.
“Currently most of our domestic
freight is moved by road, and almost
all FMCG, which is the largest
domestic freight market segment. If
we develop new domestic container
terminals situated in the right
positions we could move more freight
domestically via rail and make a
significant impact on costs.”
He says unless change is brought to
the system South Africa is looking at
a logistics crisis in the next few years.
“Our sums just don’t add up. We
cannot continue moving our freight
the way we do at present.”
Havenga believes a domestic
intermodal system will make a major
difference.
“We just cannot move more goods
by road. Currently there are almost
3 000 trucks on the N3 between
Johannesburg and Durban per day.
By the year 2044 – if we do nothing
to the current situation – that
number will be around 12000 trucks
a day. How do you build a road that
takes that kind of truck traffic? You
can’t. Even if we move all rail-friendly
freight to rail by 2044 we will still
need nearly 6 000 trucks per day.
12 000, however, is unthinkable and
impossible.”
He says a collaborative approach
will be required to ensure the success
of a domestic intermodal system.
“It means that all the role-players
need to come to the table and
concessions will have to be made by
all. Both the public and the private
sector will have to work hard to make
collaboration work and both will
have to give leeway to the other for
the bigger goal to be achieved – that
of more efficient logistics.”
According to Havenga, by
optimising and using more rail major
gains can be made in terms of cost.
“That does not mean that road
transport has no role to play. We
are just going to have to move railfriendly
cargo
to rail to ease
the pressure
on the road
system first
and foremost,
and then to
address cost.
Also, the
improvement
in the carbon
footprint
of logistics
should be
considered.”
Also think
about the
land use required for major road
expansion. “It is proven that the
space required per ton per kilometre
is less on rail than on road,” he says.
“Rail for large volume loads
between high density cities, such as
Cape Town, Gauteng and Durban,
is cheaper. That has been proved all
over the world,” he says. “To make it
work locally though there will have to
be cooperation and collaboration on
a grand scale.”
He says state-owned enterprises
such as Transnet would in the long
run have to look at their rates to
make it more viable to move goods
to rail, while the private sector
would have to find ways of lowering
additional costs to ensure a more
cost-effective environment. The
state would also have to create a
supportive regulatory environment
relating to road to fix the ongoing
cost debate and enable public
private partnerships. “Until we do
all these things we are not going to
get this right. We have to find the
right framework for public private
partnerships.”