Transport Industry in South Africa
transport
The South African transport and logistics industry: a spoke in the wheels
henry carelse and shaun scott
DIRECTORS: WORLDWIDE INTEGRATED LOGISTICS (PTY) LTD
R
Most industries in South Africa are faced with globalisation and transformation challenges. The South African transport and logistics industry is, however, faced with a number of its own peculiarities. This diverse industry comprises tens of thousands of individual truck- and bakkie-owners, as well as some of South Africa’s largest conglomerates including Transnet, Bidvest, Imperial and Grindrod. These service providers all experience reliability and cost-efficiency challenges, and many are faced with poor assets that struggle across inadequate road, rail and port infrastructure. Unless something is done to alleviate these problems, the sector could soon find itself in a crisis.
elentless service improvement and investment programmes in the transport and logistics industry will eventually have an impact on reliability and cost issues, but there are a number
of deep-seated challenges that face these players: The industry is rapidly consolidating. Most of them are struggling to be relevant in the global markets – there is no SAB Miller in this space. Empowerment deals have advanced, but their sustainability within a consolidating world is a challenge. Supply chains are demanding increased levels of integration, forcing often reluctant changes to business models. Transnet – and particularly Spoornet – are in a downward spiral, impacting everyone that uses rails and sea ports. Technology is changing rapidly, requiring players to keep pace. Supply chain skills are in demand, scarce and mobile.
INDUSTRY CONSOLIDATION. In South Africa, the industry went through a
1 convergence vol 6 no 4
transport consolidation phase in the 1980s, ’90s and early part of the 21st century. This process saw the emergence of mega and large conglomerates, including Bidvest, Imperial, Unitrans,
The South African transport and logistics industry: a spoke in the wheels
henry carelse and shaun scott
DIRECTORS: WORLDWIDE INTEGRATED LOGISTICS (PTY) LTD
R
Most industries in South Africa are faced with globalisation and transformation challenges. The South African transport and logistics industry is, however, faced with a number of its own peculiarities. This diverse industry comprises tens of thousands of individual truck- and bakkie-owners, as well as some of South Africa’s largest conglomerates including Transnet, Bidvest, Imperial and Grindrod. These service providers all experience reliability and cost-efficiency challenges, and many are faced with poor assets that struggle across inadequate road, rail and port infrastructure. Unless something is done to alleviate these problems, the sector could soon find itself in a crisis.
elentless service improvement and investment programmes in the transport and logistics industry will eventually have an impact on reliability and cost issues, but there are a number
of deep-seated challenges that face these players: The industry is rapidly consolidating. Most of them are struggling to be relevant in the global markets – there is no SAB Miller in this space. Empowerment deals have advanced, but their sustainability within a consolidating world is a challenge. Supply chains are demanding increased levels of integration, forcing often reluctant changes to business models. Transnet – and particularly Spoornet – are in a downward spiral, impacting everyone that uses rails and sea ports. Technology is changing rapidly, requiring players to keep pace. Supply chain skills are in demand, scarce and mobile.
INDUSTRY CONSOLIDATION. In South Africa, the industry went through a
1 convergence vol 6 no 4
transport consolidation phase in the 1980s, ’90s and early part of the 21st century. This process saw the emergence of mega and large conglomerates, including Bidvest, Imperial, Unitrans,