Rising demand for digital traceability

SGS has expanded its road freight inspection and certification services as part of an ongoing effort to support safer and more efficient cross-border trade. According to Johan Eksteen, business manager for the Connectivity & Products Division (C&P) at SGS, investments have been made in digital platforms that allow real-time monitoring of cargo integrity, ensuring compliance with both local and international standards. This innovation reduces delays at checkpoints and enhances transparency for clients moving goods by road. “On the rail side, SGS C&P has introduced advanced risk assessment and cargo verification solutions tailored to bulk commodities and containerised freight,” he told Freight News. “By integrating IoT-enabled sensors and remote auditing tools, we are helping rail operators improve efficiency while maintaining strict safety and compliance standards.” Eksteen said there was rising demand for digital traceability and compliance reporting within the road freight sector. “There is also increased focus on sustainability, with companies seeking greener logistics solutions. Pressure to optimise costs amid fluctuating fuel prices and global supply chain disruptions remains.” He said there was growing interest in rail as a lower-carbon alternative to road transport. “Infrastructure modernisation projects aimed at improving reliability and capacity are on the increase and there is more collaboration between private and public stakeholders to unlock investment in rail corridors.” Asked about the challenges, he said congestion, rising fuel costs and regulatory complexity remained significant hurdles for road operators. Ensuring cargo safety and compliance across multiple jurisdictions was another persistent challenge. “In the rail space, ageing infrastructure, limited capacity on key routes and operational inefficiencies continue to constrain growth. Rail operators also face pressure to modernise systems while balancing affordability.” But, said Eksteen, opportunities existed in both sectors. “For road, the biggest opportunity lies in leveraging digital compliance tools to streamline border crossings and reduce downtime. Demand for certified, transparent logistics solutions is driving growth in this area. Rail presents strong opportunities in bulk commodity transport and long- haul freight. The push for decarbonisation is accelerating investment in rail as a sustainable alternative, creating new avenues for SGS C&P’s compliance and certification services.” Looking at rail volumes, there has definitely been an increase, particularly in bulk commodities and intermodal freight. This has been driven by sustainability targets, cost efficiency and government- backed infrastructure upgrades. “Road freight volumes remain resilient, with growth in FMCG and cross-border trade. However, operators are under pressure to adopt compliance-driven digital solutions to remain competitive,” said Eksteen. The company’s outlook for both road and rail remains positive, said Eksteen. “We expect steady growth for road freight, supported by digitalisation and compliance-driven efficiencies. “Operators who embrace transparency and sustainability will be best positioned to thrive. Rail will continue to gain momentum as infrastructure projects progress. With sustainability at the forefront, rail is poised to capture a larger share of freight volumes, especially in bulk and long-haul sectors.” LV