Sustainability a core driver of competitiveness

Sustainability is no longer a compliance exercise in logistics but a strategic lever for competitiveness, cost control and long-term resilience. “We are seeing a decisive shift toward sustainability,” said Dr Nazmira Mohamed, programme coordinator at Boston City Campus. “Fleets are being upgraded with low-emission vehicles, warehouses are moving to solar power and carbon-tracking tools are now part of daily operations. These are no longer optional compliance measures, but the foundation of competitiveness. Companies that embrace this shift are strengthening both growth and long-term resilience.” Speaking to Freight News, Mohamed said infrastructure inefficiencies remained the sector’s biggest hurdle, driving up costs and emissions. “The heavy reliance on road transport over rail compounds the problem. Outdated rail networks and limited investment have kept South Africa reliant on road transport, compounding inefficiencies. The challenge is balancing affordability with the investment needed for greener, more resilient systems,” she said. She noted that green corridors were being piloted along major trade routes, while circular supply chains were gaining traction and sustainability reporting was becoming a differentiator in contract awards. These initiatives, though still at pilot stage, signal opportunities for South Africa to position itself as a regional leader in sustainable logistics. “The market is rewarding logistics providers who can demonstrate measurable environmental performance,” she said. While global players were accelerating net-zero initiatives, South Africa was still constrained by infrastructure limitations. “Globally, fleet electrification is scaling rapidly as logistics moves toward net-zero targets. South Africa shares this ambition but lags in infrastructure readiness. While international players are deploying electric fleets at scale, local firms are still piloting smaller initiatives, although the appetite for innovation remains strong,” said Mohamed. Despite these constraints, South Africa is making headway. She pointed to renewable energy incentives, transport master plans and emerging public-private partnerships as policy levers that could accelerate progress. “Green investment incentives, technology adoption and public- private partnerships can unlock competitiveness and attract global partners,” she said. “AI-driven route optimisation, digital visibility platforms and collaborative models like shared warehousing are cutting waste, lowering emissions and improving reliability. IoT sensors track emissions in real time, automation reduces idle time and predictive analytics lowers environmental footprints. Digital tools are turning sustainability from aspiration into measurable practice. Although adoption is still uneven, early pilots demonstrate clear results, reinforcing the case for scaling these innovations.” Asked about the issue of high logistics costs, Mohamed said much of the pressure stemmed from infrastructure inefficiencies and fuel dependency. She acknowledged that upfront investments in renewable energy and rail revitalisation could be significant and stressed that they reduced long-term costs and improved resilience. “The overall outlook for the logistics sector is cautiously optimistic. Sustainability is becoming a core driver of competitiveness and early adopters of green practices will gain a clear advantage.” LV