‘Focus on transport costs rather than strength of the rand’

Addressing the exorbitant cost of transport is essential if exporting really wants to be encouraged in South Africa, according to Advocate Mark Nowitz, president of the Johannesburg Chamber of Commerce and Industry (JCCI). Speaking at the JCCIFNB 2010 Gauteng Exporter of the Year award ceremony in Johannesburg, Nowitz said 2010 had been a tough year for exporters for a variety of reasons, one being the strength of the rand. “There are those that believe effort should be made to depress the currency, ostensibly to benefit export. Luckily market forces are strong enough to prevent artificial interference as this is not the way to support exporting. A much better and more tangible way is to address the ever-increasing cost of transport.” Nowitz said South African transport costs had to be addressed as they were considered to be extremely high. “We have had a situation in this country where some 40 years ago we moved from road to rail. Now, understandably so, there is a move back towards rail.” He said it was time that the private sector and government worked together to address the issues around transport. “Government, business, ports and rail should all be working in tandem to find a solution in an effort to ensure that the cost of exports are kept to a minimum while efficiency is at a maximum,” said Nowitz. “That means ensuring no more bottlenecks at border posts or addressing the perceptions around the inefficiencies. We must focus on finding a tangible solution that will bring down the cost of export.”