The vulnerability of transport costs to a volatile cost driver - the price of crude oil - and South Africa's entrenched dependence on road transport does not bode well for the economy.
For the survey, data obtained from a broad range of industry and government stakeholders identified the key challenges in the South African road freight sector. Respondents felt that poor road conditions (64%), the cost of fuel (52%) and a lack of law enforcement and prevalent non-compliance (43%) are the top-three challenges in the industry. The condition of the country's roads is also regarded as a critical cost driver by 73% of the respondents.
The survey furthermore reports that the contribution of poor road conditions to fatal accidents shows that the effect of bad roads stretches much further than increased vehicle operating costs. Road-related factors contribute to 5 to 15% of fatal road accidents, of which 28% can be attributed to poor road surface conditions. The total cost of fatal accidents caused by poor road conditions in 2010/2011 is estimated at between R207 million and R621 million.
This is stated in the ninth State of Logistics survey for South Africa 2012 published by the CSIR, Imperial Logistics and Stellenbosch University.
The survey covers a comprehensive range of topics contributed by a variety of research experts in the field. This year's edition marks a milestone, with much effort going into preparing logistics costs and freight flow results for 2011 and 2012, effectively closing the two-year time lag in previous reporting. In addition, the research process was opened to industry feedback through a pre-launch event that provided valuable input during the compilation of the survey articles.
"The State of Logistics survey for South Africa 2012 delivers a message of action," said Nadia Viljoen, scientific editor of the survey and a researcher at the CSIR.
"South Africa must address critical issues relating to the road freight sector, shift freight from road to rail and address rampant skills shortages and misalignment in the logistics sector. The Southern African Development Community (SADC) needs governments and the private sector to join hands for ambitious inland corridor initiatives and for developing a world-class maritime transhipment community for trade."
SADC could become a world-class transhipment community due to its geographic location. South Africa and Mauritius currently rank 39th and 50th, respectively, out of 157 coastal countries in terms of maritime importance. Immense potential and business opportunities exist in southern Africa in terms of natural resources, low-cost labour and a rapidly growing consumer market. However, the top-three constraints to doing business in Africa are unavailability of reliable service providers and partners; lack of adequate infrastructure; and long transit times and unreliability.
To view the publication, go to www.csir.co.za/sol.
