Logistics survey calls for first aid for ports and rail

SOUTH AFRICA needs to urgently review its high internal logistics costs at all levels and address the issues and challenges, especially those related to inland and crossborder transportation. That’s the finding of the fourth State of Logistics Survey undertaken by the Council for Scientific and Industrial Research (CSIR) and released last week. Although SA is ranked 24th out of 150 countries on the World Bank's logistics performance index (LPI), it is only rated 124th based on logistics expenditure, according to the report. This, according to the CSIR, can be ascribed to a number of logistics hurdles – such as inadequate infrastructure and processes at ports and borders. “The growth in logistics, transportation and ocean freight underlines the positive economic development that SA, as well as the southern African region, has experienced over the past couple of years,” said CSIR’s Hans Ittmann. “In order to maintain this trend and increase our international competitiveness, we urgently need to develop our southern African ports and rail infrastructure to handle the increased demand for freight and transportation in the most cost-effective and efficient way.” The CSIR noted that capital expenditure had been planned for port expansion and development as part of Transnet's overall freight logistics strategy. Within the next five years, Transnet is expected to spend some R80-bn on such developments – designed to significantly improve SA’s port and rail infrastructure, while decreasing congestion on the roads in metropolitan areas. “However,” said the report, “in the short- to medium-term, the situation will continue to be challenging and will require intelligent solutions from logistics and supply chain managers.”