Now the parastatals are becoming competitors
THE SOUTH African Freight Forwarders Association (SAAFF) is gearing up for the tremendous challenges of the future, but is facing them with a positive outlook, says John White, who was elected president of the association at its recent annual general meeting.
We are moving away from being purely agents to becoming logistic providers. Overseas shippers demand this, and the local industry will move in the same direction. In many ways it is a breath of fresh air in what amounts to re-inventing the industry, says White.
The industry is still made up of the large multi-nationals, medium-sized and smaller freight forwarders. With the larger names merging and the smaller ones concentrating on niche markets, the medium-sized companies need to assess their position and put in place measures to remain effective.
White sees interesting challenges ahead, even in the face of the falling rand. SA is still an import-based country, but with a gradual reduction in the levels of import duties and having one of the finest international transport services in the world, both importers and exporters can operate effectively in dealing with other world economies, says White . The freight industry has to adapt to these changes as well.
Not all the challenges are however positive. Parastatals are all going through a redefining and transformation phase, with the likes of Transnet seeing themselves as 'Logistic provider of freight solutions'. So we see a key supplier of transport services to the freight industry in direct competition with us.
Customs too are transforming themselves within SARS by
re-engineering their business process and embracing electronic trading.
SAAFF is proud to be part of this process which will position Customs to comply with fiscal requirements on the one hand and facilitate trade on the other.
Through SAAFF's affiliation to the Federation, there are projects under way to deal with border post issues and the harmonisation of documentation between the Southern African states.
To meet the skills and manpower requirements, SAAFF is totally committed to proper training, not only for newcomers into the industry, but also for the people already there who have to become multi-tasked to meet the future.
