South Africa’s transport and logistics sector needs a permanent apex body to maintain a coordinated business voice as the National Logistics Crisis Committee (NLCC) winds down, according to an industry expert.
Speaking at the Institute of Customs and Freight Forwarding’s executive brunch on September 18, Business for South Africa (B4SA) Senior Executive Consultant for Integrated Supply Chains Ian Bird said the sector relies on a temporary umbrella structure to advance its interests.
“There isn’t an apex logistics body at the moment, such as the Energy Council for the energy sector. So far, we have been using B4SA,” he said.
B4SA was formed during the COVID-19 pandemic. It has subsequently been repurposed to represent organised business on the NLCC. Government established the committee in March 2023 in response to the deterioration of South Africa’s freight rail and port performance.
According to Bird, the NLCC has been gradually winding down since around March with responsibility for coordinating logistics reforms increasingly returning to the Department of Transport.
He proposed establishing a permanent logistics council to provide a platform for continued engagement between industry and government.
“This will be, somewhat, an association of associations. That’s how we are conceptualising it at the moment,” Bird said.
Instead of continuing as a parallel crisis structure, industry engagement should increasingly take place through the Department of Transport, he added.
Organised business would remain involved in the logistics sector although at a reduced level, Bird said.
The absence of a permanent apex body could weaken the industry’s ability to maintain a coordinated position on unfinished structural reforms, including the establishment of the Transport Economic Regulator, rail restructuring and private-sector participation initiatives.
Bird said Transnet’s rail volumes remain at approximately 170 million to 180 million tonnes a year, which is well below government’s target of 250 million tonnes by 2030.
A permanent logistics council could help maintain momentum on rail and port reform while coordinating the sector’s support for economic activity in areas such as mining, agriculture, manufacturing and infrastructure, he added.
