‘Jo’burg poorly positioned as a logistics hub'

UNLESS SA can create more globally competitive national supply chains in its major industries very soon, despite its current prosperity, Johannesburg may be bypassed as a part of the new global economy. That’s the view of supply chain guru Barry Saxton, who points out in his new book, 'Rock The Boat: Why leaders need to make waves to succeed in the era of globalisation', that Johannesburg is very poorly positioned to act as an industrial and logistics hub. The development of the country’s industries in Gauteng is more of an historical accident, says Saxton. “Strategies are being tabled for the re-engineering and re-organising of our infrastructure from a logistical point of view. In this process, however, caution must be taken that we are not endeavouring to build and re-engineer the infrastructure to cater for the old industries or for the businesses that worked for South Africa in the past,” says Saxton. “It is essential that we develop industries and businesses that are related to the future, which identify the needs of marketplaces around the world and that take advantage of our geographic positioning, and our unique skills, abilities and resources. “ Saxton believes we need to develop skills and abilities like finance, technology and similar services-oriented businesses, where the location of Johannesburg would seem to be ideal, and where the delivery system is digital. “If we are entering into global markets, with greater reliance on imports and exports and consequent higher logistical costs. It must create for itself competitive advantages in areas that don’t rely on the low cost of logistics to support exports and imports.” Rock The Boat is published by TerraNova and is available from selected bookstores, in hardcover, at the recommended retail price of R280.