South Africa needs a single, independent transport economic regulator, according to Dr Juanita Maree, CEO of the South African Association of Freight Forwarders (Saaff).
During a recent Transport Forum, she said this was what Saaff was advocating for as such a regulator would not only go a long way in looking after multimodal infrastructure in the country, but also allowing open access to it. “Transport is not like the energy crisis we are seeing in the country. A company cannot put in an inverter, solar panels, or batteries to address the problem. We are reliant on shared infrastructure and we need to uphold that.”
Calling on industry to become more vocal on this matter, Maree said it was important for the country to integrate end-to-end supply chain solutions through intermodal transport management systems.
She said it was not supply chains competing in the country, but South Africa Inc. “The country is competing against the world. We need to emphasise the message that the logistics network impacts SA Inc and do everything in our power to ensure a smooth logistics network. As the private sector, we need to engage more with the public sector, and yes, sometimes the discussions are robust and not easy, but we need to develop the art of listening and trying to understand each other.”
She said the logistics industry in the country had never been designed to absorb the level of shock of the past few years, and it simply could not handle much more. “We have to work together as an industry, and work with the public sector to find solutions that make this country competitive and bring about growth.”
Dr Roelof Botha, a research economist at GIBS Business School, reiterated the importance of logistics to the economy. “The Romans had an expression – via vita – the road is life. A country must have the ability to get its goods to market.”
Botha said South Africa could increase exports significantly, but to do that it needed to not only invest in logistics infrastructure, but improve efficiencies around ports and borders.
“South Africa can easily see growth of 6% per year if it just fixes logistics,” he said.
Botha indicated that while progress had been slow, it was moving in the right direction. Commending President Cyril Ramaphosa’s decision to sign performance agreements with key government and state-owned entities, he said improved infrastructure and operational efficiency would bring down the cost of logistics and make South Africa far more competitive.
“We are seeing the President increasingly hold people in top positions accountable. The appointment of former Exxaro boss Sipho Nkosi to reduce government red tape is another clear indication that South Africa is taking steps in the right direction to improve the ease of doing business.”
