Ambiguities in the Act removed
KEVIN MAYHEW
THE LOCAL domestic courier and linehaul sector within the freight industry - threatened by the initial wording of the Postal Services Act - believes it has achieved acceptable compromises with government to keep the R2.5bn sector vibrant and profitable.
Garry Marshall, the executive director of the recently established South African Express Parcel Association (SAEPA), addressed the media last week to introduce the new body that replaces the South African International Courier Association.
“We trust that our needs and safeguards will be incorporated in the new legislation as we know that our freight sector is geared to take on the challenges of the confident economic climate and contribute to addressing economic empowerment,” he said.
The previous wording of the proposed Act left too many ambiguities within the definition of what constituted a postal and courier service. The industry wanted these clarified for long term certainty, he said.
He explained that the sector was sympathetic to the government’s dilemma as it delivered less than cost effective postal services to all South Africans in terms of its social upliftment obligations.
“However, we could not operate with the uncertainties of the initial proposed Act that could have provided a crippling level of protection for the parastatal. We always believed that there was room for both,” he explained.
On economic empowerment he said the industry was a prime empowerment sector. Already success stories exist where drivers in white-owned express freight operations have acquired a vehicle and serviced specific areas or niche markets to set up their own companies.
The introduction of wholesale inter-city express services had further increased these companies’ capacity to offer extended services, without the cost of setting up a dedicated network of their own, he said.
SAEPA comprises 45 member companies that include most of the major players as well as an increasing number of smaller and independent service providers.