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CAPITAL EQUIPMENT NEWS
MARCH 2017
39
THOUGHT LEADERSHIP
I
nMarch 2015, government announced plans to spend R813 billion
on infrastructure over a period of three years. However, spend
to date has been lower than anticipated. But, if government is
serious about keeping to its expenditure plan – and stimulating
economic growth – it needs to fast-track infrastructural spend and
focus on projects in the transportation industry.
South Africa’s transport infrastructure has a direct impact on the
growth of the economy, contributing 48% to GPD, and determines
the efficiency with which our country does business. Upgrading
our transport infrastructure will go a long way to improving South
Africa’s growth prospects.
I believe better days lie ahead provided we, as a country, make
the necessary infrastructural investments as soon as possible. No
matter what business people are in, they need to get things from A
to B in order to set up a business or trade goods, and that requires
an efficient and reliable transport sector. Road, at 86%, carries the
majority share of freight compared to other modes, followed by
shipping and then rail.
Road is currently regarded as being the most reliable, predictable
and cost effective mode of inland transportation and the development
of transport corridors – such as the Trans-Kalahari Corridor – have
gone a long way to growing trade with neighbouring countries.
2016 was a tough year for business and consumers alike,
exacerbated by the increase in fuel costs, the weakening of the
Rand, political instability and a slow growing economy. It not
only impacted South Africa but other African countries too with a
number of projects being put on hold and mining production lower
than expected. However, we are starting to see positive cross border
movement, we are transporting sugar into Mozambique and are
negotiating the logistics of getting steel to Tanzania.
To the future
I expect demand for effective, economically viable transport
services to increase in the years ahead. Increasingly, truck and rail
services will be required at short notice to transport large volumes
of cargo from seaports to their destinations, both in South Africa
and into the hinterland. Getting goods or equipment to customers
in an efficient and economically viable way is paramount to
business success.
Whether we are required to supply 1 to 100 trucks, or more, at
short notice when a ship docks and cargo needs to be discharged,
planning the move of massive pieces of equipment across the
country to implement strategic infrastructure projects, or out-of-
gauge cargo on a long haul, the focus is meticulous planning and
delivering on time and within budget.
Key challenges
Even though South Africa currently permits some of the largest
vehicle combinations in the world for general freight haulage, at
a maximum general vehicle mass of 56 t, moving heavy-lift cargo
remains a challenge as each province requires different permits
and a police escort. Because time is money, a more efficient and
streamlined national permit system would certainly help to speed
up delivery and boost efficiency.
Moving goods over borders into neighbouring countries is even
more complex but is 40% of Concargo’s business which is why we
have developed strategic business partnerships with companies in
the SADC region. These local companies keep in close communication
with statutory officials and other authorities to ensure a seamless
and coordinated customs process.
One of the positive developments taking place in the freight
industry is the use of sophisticated IT systems and tracking in order
to monitor the status of the shipment anywhere in southern Africa.
An innovative tracking and tracing system ensures transparency
in the entire supply chain and our Proof of Delivery Image System
(PODIS) allows customers to track shipments 24/7, 365 days a year.
In a country greatly in need of job creation and skills development,
I believe it will also become increasingly important to showcase
transport logistics as a career. Transport logistics in Africa is a
vibrant and exciting industry to be part of.
b
ROAD TRANSPORT –
THE BACKBONE OF OUR ECONOMY
David Kruyer, MD and founder of Concargo
Economic growth in South Africa, expected to remain
sluggish in 2017, could be stimulated if the South
African government fast-tracked its expenditure on
strategic infrastructure projects, especially those in
the transport sector. This is the view of David Kruyer,
MD and founder of Concargo, a Cape Town-based
supply chain and road freight logistics company.