Logistics costs are seen as a “key risk” to exports of new vehicles from South Africa. “Reliance on exports is a key risk for South African manufacturers, together with possible increases in logistics costs,” says Gavin Maile, automotive director at KPMG. Shipping costs could increase in the short term as world volumes increased and the pressure on rates reduced, warned Brand Pretorius, former chairperson of the McCarthy Motor Group. In the medium term, the question was whether South Africa’s “congested” ports, road and rail infrastructure could cater for significant continued growth in exports. Questions also remain about what support the Automotive Production and Development Plan (APDP) will provide for the industry. Industry leaders have consistently called for support because South Africa’s distance from the main markets and supply hubs around the world put the local industry at a disadvantage in terms of logistics costs.
