‘We need to find the best solution for South Africa Inc’

“THE FREIGHT system in SA is fraught with inefficiencies.” That in essence was the finding of the National Freight Logistics Strategy published in 2005. Three years later much progress has been made, but transport costs are still a matter of concern, Rail Road Association CEO John Thompson told delegates at last week’s SA Shippers’ Council conference in Johannesburg. Logistics costs in South Africa were 15.7% of GDP in 2006. The cost in landlocked African countries was up to 35% of GDP while the cost in the developed world is 8.0% GDP. All of which points to the need for integrated rail services, a demand which purchasing managers are echoing, according to Thompson. He called for continued dialogue at all levels to improve the utilisation of current infrastructure. “Let us plan for the future on the basis of new and improved assets, always looking for what is best for South Africa Inc. After all, there is enough cake for all to enjoy. “If we get our plans right the added volumes that will flow, at lower cost and environmental impact, will steer the whole freight industry into a new dimension to the benefit of all.”