Land transport volumes bounce back

Land transport volumes have
bounced back exceptionally well
despite trying economic conditions,
according to economist Mike
Schüssler.
Speaking at the recent Road
Freight Association (RFA)
conference, he
said in February
this year the
total tonnage
measured by the
land transport
survey had
increased by 8%
year on year and
heavy vehicles
going through
the Tugela
toll plaza had
also shown an
increase of 6.7%.
“Much of this can be attributed
to increased imports because of
the drought, while the turn in the
commodity prices has pushed up
bulk volumes,” said Schüssler.
He said the positive growth seen
in the transport sector in the first
quarter of the year was the fastest
growth recorded in the past five
years and undoubtedly a green
shoot for the sector, but it was not
out of the woods yet.
“Transport is looking a lot
better,” he said. “Agriculture for the
first time in two years is positive,
with the biggest maize crop in
a decade having been recorded.
The soya crop
is also breaking
records.”
He said there
were some
negatives that
the industry still
had to negotiate,
such as the
non-performing
manufacturing
sector in some
instances, the
struggling
retail sector where low consumer
confidence continued to impact,
and the changing motor vehicle
industry.
He said despite transport’s
positive growth the country was
still under economic pressure with
expectations of nothing more than
2.2% growth at best in the next
four years.
INSERT AND CAPTION
The positive growth seen in
the transport sector in the
first quarter was the fastest
growth recorded in the past
five years.
– Mike Schüssler