Express 'barometer' reflects buoyant economic activity

Average SA growth close to 20% per annum ALAN PEAT THE EXPRESS industry is currently seeing high growth, according to Garry Marshall, executive director of the SA Express Parcel Association (Saepa), with its members reporting high levels of business. “It’s basically a barometer of SA’s economic activity,” he told FTW, “with the industry very reactive to conditions.” When things are good the express sector booms, he added, with national and international supply chains having to be fast-moving to meet industry’s urgent needs. He derived this assumption from the latest global figures forecasting annual growth of 6% for the airfreight industry. But the average growth of the express business in SA is closer to 20% – some three-to-four times SA’s gross domestic product growth. “It is logical the way things are that goods need to be distributed faster-andfaster, and so speedy and time-definite transportation becomes essential,” Marshall said. The regulatory challenges for the express industry in SA are the same as they are around the world. “The main issue is that efforts to comply with legislation should not inhibit business,” Marshall added. At the moment, one of the critical issues in SA is security – with the new regulations in terms of Part 108 of the Civil Aviation Act having been gazetted, but the date of implementation not yet known. This follows the “known shipper” concept, according to Marshall, and will have a “major impact” on the express sector, with big investments needed for companies to comply. “This is the biggest issue when we are looking at cost and possible delays,” he said. “But, while we are concerned about the lack of clarity and ambiguous wording of the legislation, we fully support any initiative to ensure aviation safety.” The other problem is the demise of the postal regulator – and the absorption of its functions into the Independent Communications Authority of SA (Icasa). “Saepa had built a good relationship with the people in the postal regulator,” said Marshall. “But it’s now new regulators we don’t know, and who don’t know us.” This could, however, soon be remedied, he added. Icasa has just published its “code of good conduct for the postal industry”, and Saepa has a meeting with the authority diarised – “to get a take” on this issue, said Marshall.