When it comes to new legislation, the freight and transport industry needs to ensure it continues lobbying the relevant government departments to ensure workable solutions for all role players.
This is especially important as the Department of Transport focuses its current legislative changes on the development of the infrastructure and operations of rail, pipelines, airports, roads, ports and intermodal operations, says Quintus van der Merwe, head of the International Transport, Trade & Energy department at law firm, Shepstone & Wylie.
“It needs to be remembered that while the industry will be driven by economics, the government is often driven by socio-political factors. These factors may be at odds with pure economics or maximising of profits or efficiencies,” he pointed out.
New legislative changes around transport may have some positive impact, according to Van der Merwe, including new efficiencies, an integrated transport plan, new opportunities for business expansion, and employment opportunities.
“Furthermore, building and maintaining roads would assist the transporter. For example, quicker routes may be available, transporters could have access to routes that were previously unavailable, and maintenance would improve the conditions of the road, making it safer for transporters to travel and transport goods,” he pointed out.
However, there are several potential negative impacts as well, including government’s road to rail migration strategy which requires careful input from business to make sure any solutions are in fact economically efficient and workable, cautioned Van der Merwe.
Concerns include the fact that the state-owned logistics company, Transnet, has a monopoly in respect of ports and rail, which “inherently prejudices healthy competition and does not allow economic forces to govern rates or service levels”.
Van der Merwe added that major infrastructure developments and/or legislative changes could take years to be implemented, could affect operational efficiencies and could require transporters to undertake costly changes to their fleets, including with regard to new systems, technology or new operational structures.
“Such changes require careful consideration, require sufficient leadtime and they need to make economic sense,” he said, noting that it was therefore essential for industry to stay abreast of developments.
“We also have a strong constitution, and where necessary policies or intended legislation may be challenged if they are unconstitutional,” commented Van der Merwe.
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We have a strong constitution and where necessary policies or intended legislation may be challenged if they are unconstitutional. – Quintus van der Merwe
