Border delays cost southern Africa R307m a year

Logistics accounts for 15% of GDP Ed Richardson LOGISTICS ACCOUNTS for nearly 15% of South Africa’s gross domestic product, according to transport minister Jeff Radebe. Speaking at the congress of the International Association of Freight Forwarders at Sun City last week, Radebe said “the total throughput (inclusive of local production and imports) in the whole SA economy that requires logistics interventions amounted in 2003 to 745 million tons, divided between 49% for mining, 45% for manufacturing and 6% for agriculture. “Even more revealing, though, is the estimate that it cost R135 billion in 2003 in transport costs to move that quantity, where 62% of the total cost was attributable to long-haul road transport, 22% to road distribution, 8% each to rail and air, and 1% to pipeline and water modes. “It is estimated in the overall picture to include the logistics costs of the transport system itself, which puts logistics costs to the South African economy in the region of 14.7% of GDP. Transport represents some 75% of that cost. “Looking at the wider picture we should all note, too, that a critical component of Africa’s trade relates to transport costs and their impact on the import bill. Delays that are often experienced at border posts impede the development of a seamless transport system. “In southern Africa, for example, one survey suggests that delays range on average between four hours (at Pioneer Gate between SA and Botswana) and 36 hours (at Victoria Falls between Zambia and Zimbabwe), or 17 hours at Nakonde on the Tanzam corridor between Zambia and Tanzania. The cost to the southern African region is estimated at some $48 million (R307m) annually!” he said. These problems will be overcome by “forming partnerships between countries, across borders, between business entities and state enterprises, and of course with the international trade and investment community,” he said.