Overborder retailers stick with road for reliability

Road remains the most reliable way of getting goods to final destinations across Africa, a leading retailer trading on the African continent told FTW. “We have invested a huge amount of resources in establishing an efficient supply chain across Africa. We remain heavily reliant on road transporters to ensure that the supply chain functions at its optimum,” said a spokesman for the company. He explained while there was a definite move towards reviving rail, not only locally but also in several African countries, this was however still far from being a practical option on which retailers could depend. “When you are moving a variety of goods – from perishables to furniture – across Africa you need reliability first and foremost. This because the costs are already high to begin with due to the various challenges one is faced with – from congestion and delays at border posts to non-existent infrastructure in some places.” He said road allowed for some reliability unlike rail. “There is no doubt that there is business to be done in Africa, but it is all about affordability. It has to be affordable otherwise you are going to run into trouble. Eliminating all obstacles is part of ensuring that affordability,” he explained. “Moving one’s cargo along the easiest and cheapest route is the obvious way to ensure affordability not only of your operations but ultimately your products on a shop shelf.” He said in Africa this meant shipping to the nearest non-congested port and then transporting by rail further. “Some products are best moved by air but air freight into Africa is expensive and it has to make economic sense to use this mode of transport.” Road, he said, remained the key way of getting products into Africa. “Transport in Africa is costly no matter how one looks at it. Containing those costs is the difference between success and failure.” He said many locally based retailers used South African transporters but often it was necessary to bring local partners on board in specific countries. “We believe that partnerships are important in Africa if one wants longevity in markets and so when possible we do look at joint ventures with transport companies.”