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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2023

    Michael Felton | South Africa | 30 March 2023

    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2019

    Liz Kneale | South Africa | 31 October 2019

    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2017

    Liz Kneale | South Africa | 29 May 2017

    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2015

    Liz Kneale | South Africa | 31 August 2015

    Report Info

    Report Summary Table of Contents
    Enquire about this report

    Report Coverage

    This report covers courier, express and parcel services offered by registered unreserved postal operators in terms of the Postal Services Act, excluding reserved national postal activities carried out by the Post Office. It includes information on the state of the sector, parcel freight and transport income, the growth in ecommerce, major players, corporate actions, developments. And influencing factors. There are profiles of 24 companies including PostNet, RAM, Takealot, Value Logistics, DHL, DSV, Aramex and Courier Guy.

    Introduction

    • The courier, express and parcel (CEP) services industry faces weak economic conditions and low business and consumer confidence, affecting the volume of goods requiring express delivery.
    • The industry is benefitting from the development of the on-demand economy and growth in ecommerce sales, increasing demand for just-in-time deliveries and from the poor service provided by the South African Post Office.
    • Increasing customer demand for speedy and flexible deliveries and the growth of disruptive startups and innovative delivery options are forcing traditional operators to review their distribution strategies or partner with or invest in new delivery companies to provide innovative and alternative delivery options.
    • The continuous development of drones, robots, and autonomous vehicles are driving ongoing change in the industry.

    Strengths

    • Available information technology for all aspects of logistics management.
    • Broad scope of services such as same day, tracking, security etc.
    • Global presence and large number of services.
    • High competition leads to competitive prices.
    • Provides a support service which facilitates the success of other sectors of the economy.
    • Provides efficient customer services.
    • Technologically advanced.
    • Value-added services such as storage, set up and installation, insurance etc contribute to supply chain efficiencies.

    Weaknesses

    • Critical shortage of professional drivers and other staff.
    • High carbon emissions from vehicles.
    • Industry is affected by local and global economic conditions.
    • Inefficient and costly delivery options such as low volume deliveries and deliveries to remote areas.
    • Insufficient services to rural and outlying areas.
    • Lack of employee safety.
    • Pricing highly dependent on transportation costs.

    Opportunities

    •  Innovation provides opportunities to streamline operations and offer niche services.
    • Availability of alternative technologies for delivery such as drones and autonomous ground vehicles.
    • Development of industries and new industries which will need CEP services.
    • Diversification of services.
    • Ecommerce will increase the flow of goods requiring delivery.
    • Increasing days of operation.
    • Increasing demand for electronic products from middle class and youth on the African continent.
    • Potential expansion through mergers or acquisition of other CEP operators

    Threats

    • Alternative delivery options such as locked automated drop boxes and pick-up points.
    • Competition for traditional operators from on-demand courier startups.
    • Complex and costly home deliveries associated with ecommerce.
    • Different laws in different countries.
    • Electricity supply restrictions and loadshedding.
    • Electronic communications reduce demand for delivery of documentation.
    • High level of unemployment.
    • High operational costs such as increasing fuel costs, carbon tax and toll fees.
    • Legal challenge of the South African Post Office and ICASA.
    • Natural disasters, diseases, famine and drought.
    • Online retailers investing in inhouse distribution networks.
    • Political and civil unrest, violence and strikes.
    • Poor road conditions and road maintenance backlog causes vehicle damage and delivery delays.
    • South Africa’s worsening reputation is affecting trade.
    • Vulnerability to hijackings and theft especially during transportation of easily saleable, high value goods in remote areas.

    Outlook

    • The South African courier, express, and parcel market has recorded substantial growth in recent years, and revenue is projected to expand over the next five years.
    • The growth of ecommerce is driving growth of the industry.
    • Urbanisation and infrastructure development could propel growth further, and new technologies can provide growth opportunities to service providers.
    • Risks include increased competition, new entrants and disruptive startups.
    • Government and regulatory bodies may impose restrictions on operators, limiting their ability to operate and grow.
    • New distribution models such as retail pick-up points are enabling faster, more affordable and more convenient express parcel deliveries to more distribution points, which could boost the sector\'s growth.
    • Continued rapid ecommerce growth is poised to continue.
    • Competitiveness will be driven by cost of delivery and the efficiency of reverse logistics.

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa
    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2023

    Full Report

    R 6 500.00(ZAR) estimated $365.20 (USD)*

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    Industry Landscape

    R 4 550.00(ZAR) estimated $ 255.64 (USD)*

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    Historical Reports

    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2019-10-31

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2017-05-29

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2015-08-31

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 6
    2.3. Size of the Industry 7
    3. LOCAL 10
    3.1. State of the Industry 10
    3.2. Key Trends 11
    3.3. Key Issues 13
    3.4. Notable Players 13
    3.5. Corporate Actions 16
    3.6. Regulations 17
    3.7. Enterprise Development and Social Development 25
    4. AFRICA 27
    5. INTERNATIONAL 30
    6. INFLUENCING FACTORS 36
    6.1. Unforeseen Events 36
    6.2. Economic Environment 37
    6.3. Labour 38
    6.4. Safety and Security 40
    6.5. Environmental Issues 41
    6.6. Road conditions and infrastructure 43
    6.7. Technology, R&D, Innovation 43
    6.8. Alternative delivery methods 44
    6.9. Digital Communications and ecommerce 45
    6.10. Government Support 46
    6.11. Rising Input Costs 47
    6.12. Cyclicality 48
    7. COMPETITIVE ENVIRONMENT 49
    7.1. Competition 49
    7.2. Ownership Structure of the Industry 50
    7.3. Barriers to Entry 50
    8. SWOT ANALYSIS 51
    9. OUTLOOK 53
    10. INDUSTRY ASSOCIATIONS 53
    11. REFERENCES 54
    11.1. Publications 54
    11.2. Websites 56
    APPENDIX 1 58
    Summary of Notable Players 58
    COMPANY PROFILES 61
    Aramex South Africa (Pty) Ltd 61
    Business Express of South Africa (Pty) Ltd 64
    Courier Guy (Pty) Ltd (The) 67
    DHL International (Pty) Ltd 70
    DPD Laser Express Logistics (Pty) Ltd 73
    DSV South Africa (Pty) Ltd 76
    FedEx Express South Africa (Pty) Ltd 80
    Freight Innovations (Pty) Ltd 82
    Groupair (S A) (Pty) Ltd 84
    Internet Express (Pty) Ltd 86
    Isicabucabu Franchising (Pty) Ltd 88
    Laser Group (Pty) Ltd (The) 90
    Pargopoints (Pty) Ltd 92
    Postnet Southern Africa (Pty) Ltd 94
    Ram Transport (South Africa) (Pty) Ltd 97
    RTT Group (Pty) Ltd 100
    Skynet South Africa (Pty) Ltd 104
    Southgate Courier Service CC 106
    Suid-Afrikaanse Poskantoor SOC Ltd 108
    Super Group Trading (Pty) Ltd 111
    Takealot Online (RF) (Pty) Ltd 115
    TNT Express Worldwide (S A) (Pty) Ltd 120
    UPS SCS South Africa (Pty) Ltd 122
    Value Logistics (Pty) Ltd 125

    Report Coverage

    This report covers courier, express and parcel activities other than national postal activities. It includes the delivery of letters, postcards, printed matter, small parcel and other postal articles. This report describes the size and state of the industry and the factors that influence it. It examines the effects of disruption, regulation, ecommerce, road infrastructure, new delivery model sand environmental issues on the industry. There are comprehensive profiles of 27 companies. These include courier companies such as Courier Guy, FedEx Express and DHL, as well as ecommerce companies such as Takealot and companies such as Super Group, which bought 80% of specialist overnight cargo business Cargo Works.

    Introduction

    This report covers courier, express and parcel (CEP) activities offered by registered unreserved postal operators in terms of the Postal Services Act No. 124 of 1998 (as amended), including the delivery and/or couriering of all letters, postcards, printed matter, small parcel and other postal articles weighing up to 30kg, and excluding all reserved national postal activities carried out by the South African Post Office (Sapo). These reserved postal services include all mail items and parcels weighing one kilogram or less and other articles conforming to specific mass and size limitations. More detailed specifications are provided in Section 4.1.2 Regulations. Although the CEP sector faces weak economic conditions, it is benefitting from the growth in e-commerce sales, increasing demand for just-in-time deliveries and poor service provided by the post office. Increasing customer demand for speedy and flexible deliveries and the growth of disruptive startups and innovative delivery options are forcing traditional CEP operators to review their distribution strategies. In some instances, local CEP operators are partnering with, acquiring or investing in new disruptive on-demand delivery startups to provide innovative and alternative delivery options. The global CEP industry is implementing and investigating new technology alternatives such as drones, robots and autonomous vehicles. These innovations are being driven by online retailer Amazon developing its distribution networks, or as a competitive response to Amazon.

    Strengths

    • Available information technology for all aspects of logistics management.
    • Broad scope of services offered.
    • Broad scope of value-added services contributes to supply chain efficiencies.
    • Provides a support service which facilitates the success of other sectors of the economy.

    Weaknesses

    • Critical shortage of professional drivers and other staff.
    • High carbon emissions from vehicles.
    • Industry is negatively affected by local and global economic conditions.
    • Inefficient and costly delivery options such as low volume deliveries and deliveries to remote areas.
    • Insufficient services to rural and outlying areas.

    Opportunities

    •  Innovation provides opportunities to streamline operations and offer niche services.
    • Availability of alternative technologies for delivery such as drones, droids, and autonomous ground vehicles.
    • E-commerce will increase the flow of goods requiring delivery.
    • Ever-increasing demand for high quality and electronic products from middle class and youth on the African continent will provide opportunities for growth.

    Threats

    • Alternative delivery options such as locked automated drop boxes and conveniently located pick-up points.
    • Competition for traditional operators from on-demand courier startups.
    • Complex and costly home deliveries associated with e-commerce.
    • Electronic communications reduce demand for delivery of documentation.
    • High operational costs such as increasing fuel costs, proposed carbon tax and user pays principle for road infrastructure.
    • Poor road conditions and road maintenance backlog causes vehicle damage and delivery delays.
    • Trend of on-line retailers to invest in in-house distribution networks.
    • Vulnerability to hijackings and theft especially during transportation of easily saleable, high value goods in remote areas.

    Outlook

    According to Accenture Consulting the CEP sector is on the brink of a new customer focused parcel delivery model no longer based on the services offered by operators but on the demands of retailers, customers, and startups. The continued growth in e-commerce combined with consumer demand for faster, more flexible delivery requires a new and innovative delivery model. The last mile market is “ripe for disruption, improvement and re-invention, where services will be cheaper, better and more consumer-friendly”. The new model involves a data-driven, predictive and personalised user experience. Amazon measures everything possible to develop personalised customer profiles with purchasing preferences and is applying the same customer analytics capabilities with its move into the delivery sector. In order to remain competitive, traditional delivery operators need to develop similar data-driven customer DNA profiles or “genomes” to be able to predict and provide delivery preferences.Marcus Ellappan, director of road freight at Bidvest Panalpina Logistics states that although “the negative factors affecting us will result in a downswing, which obviously impacts jobs and GDP growth, and transport makes up a significant portion of GDP, the market will improve over the coming months. Ongoing training, acquiring the right assets for a job, managing variable costs, and not shying away from technology are prerequisites for surviving. The right technology will ensure companies are able to manage issues proactively and not be caught unaware by changes that present themselves”.

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa
    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.73 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2023-03-30

    R 6 500.00(ZAR) estimated $365.20 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2017-05-29

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2015-08-31

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 6
    4.1. Local 6
    4.1.1. Corporate Actions 9
    4.1.2. Regulations 10
    4.1.3. Enterprise Development and Social Economic Development 18
    4.2. Continental 19
    4.3. International 22
    5. INFLUENCING FACTORS 29
    5.1. Economic Environment 29
    5.2. Rising Operating Costs 31
    5.3. Road Conditions and Infrastructure 32
    5.4. Digital Communications and e-Commerce 33
    5.5. Alternative Delivery Models 33
    5.6. Technology, Research and Development (R&D) and Innovation 35
    5.7. Labour 41
    5.8. Environmental Issues 44
    5.9. Crime and Security 46
    5.10. Cyclicality 48
    5.11. Electricity Supply Constraints 48
    6. COMPETITION 49
    6.1. Barriers to Entry 50
    7. SWOT ANALYSIS 50
    8. OUTLOOK 51
    9. INDUSTRY ASSOCIATIONS 52
    10. REFERENCES 53
    10.1. Publications 53
    10.2. Websites 54
    APPENDIX 1 56
    Summary of Notable players 56
    COMPANY PROFILES 59
    ARAMEX SOUTH AFRICA (PTY) LTD 59
    AVL HEALTHCARE (PTY) LTD 61
    BIDAIR SERVICES (PTY) LTD 63
    BUSINESS EXPRESS OF SOUTH AFRICA (PTY) LTD 66
    COURIER GUY (PTY) LTD (THE) 68
    COURIER-IT S A (PTY) LTD 71
    DHL INTERNATIONAL (PTY) LTD 74
    DPD LASER EXPRESS LOGISTICS (PTY) LTD 77
    DSV SOUTH AFRICA (PTY) LTD 80
    FEDEX EXPRESS SOUTH AFRICA (PTY) LTD 84
    FREIGHT INNOVATIONS (PTY) LTD 86
    GLOBEFLIGHT WORLDWIDE EXPRESS (SA) (PTY) LTD 88
    GROUPAIR (S A) (PTY) LTD 91
    INTERNET EXPRESS (PTY) LTD 93
    ISICABUCABU FRANCHISING (PTY) LTD 95
    LASER GROUP (PTY) LTD (THE) 97
    PARGOPOINTS (PTY) LTD 99
    RAM TRANSPORT (SOUTH AFRICA) (PTY) LTD 101
    RTT GROUP (PTY) LTD 105
    SKYNET SOUTH AFRICA (PTY) LTD 108
    SOUTHGATE COURIER SERVICE CC 110
    SUID-AFRIKAANSE POSKANTOOR (SOC) LTD 112
    SUPER GROUP TRADING (PTY) LTD 115
    TAKEALOT ONLINE (RF) (PTY) LTD 119
    TNT EXPRESS WORLDWIDE (S A) (PTY) LTD 122
    UPS SCS SOUTH AFRICA (PTY) LTD 124
    VALUE LOGISTICS LTD 127

    Report Coverage

    The Courier Activities report focuses on current conditions, merger and acquisition activity as well as factors influencing the success of the sector. Most of the major courier companies in South Africa are subsidiaries of international companies and include Aramex (Aramex South Africa, PostNet), DHL (DHL Express), FedEx (FedEx Express South Africa), DSV Group (DSV South Africa) and UPS (UPS South Africa). Profiles for these five players are available in this detailed report. Also included are profiles for 18 other companies including Isicabucabu Franchising (Pty) Ltd, which trades as Fastway Couriers South Africa and Takealot.com, which employs approximately 1,500 people in its Takealot and Mr Delivery divisions.

    Introduction

    This report covers courier, express and parcel (CEP) activities offered by registered unreserved postal operators in terms of the Postal Services Act No. 124 of 1998, as amended. Although all reserved national postal activities carried out by the South African Post Office (SAPO) are excluded from the report, courier and express activities carried out by its subsidiary companies are included. The major changes driving the R20bn CEP industry include the shift from a Business-to-Business (B2B) market to a Business-to-Customer (B2C) market due to the growth in e-commerce, customer-centric disruptive start-ups and the introduction of automation and alternative high-tech delivery models.

    Strengths

    • Available information technology for all aspects of logistics management.
    • Broad scope of services and value-added services offered.
    • Consolidation of the industry through mergers and acquisitions to attract volume and expand networks.
    • Provides a support service which facilitates the success of other sectors of the economy.

    Weaknesses

    • areas.
    • Critical shortage of professional drivers and
    • delivery options.
    • global economic conditions.
    • High carbon emissions from vehicles.
    • Industry is negatively affected by local and
    • Insufficient services to rural and outlying
    • other staff.
    • There are some inefficient and costly
    • Vulnerability to hijackings and theft especially during transportation of easily saleable, high-value goods.

    Opportunities

    • Availability of alternative technologies for delivery such as drones, droids, and autonomous ground vehicles.
    • E-commerce will increase the flow of goods
    • Ever-increasing demand for high quality and electronic products from middle class and youth on the African continent will provide opportunities for growth.
    • Innovation provides opportunities to
    • requiring delivery.
    • services.
    • streamline operations and offer niche

    Threats

    • Alternative delivery options such as locked
    • automated drop boxes and conveniently
    • Competition for traditional operators from
    • for delivery of documentation.
    • Increasing operational costs.
    • Increasing volume of electronic communications likely to reduce demand
    • located pick-up points.
    • on-demand courier start-ups.
    • SAPO turnaround strategy to include re-launch of parcels business and move into e-commerce field.
    • Trend of online retailers to invest in in-house distribution networks.

    Outlook

    According to Technavio’s report on the Global CEP Market 2016-2020, the growth of the CEP market is directly proportional to the growth of the e-commerce industry. In order to gain competitive edge, companies are not only improving logistics efficiency but are “focusing on offering several value-added services such as the assortment and grading of products, packaging, management information system (MIS) services in the logistics supply chain, mobile tracking applications, online tracking of parcels, SMS and e-mail alerts, and hub-to-spoke collection centres. Vendors in the market are also deploying GPS-enabled transportation trucks for tracking, radio-frequency identification (RFID) for inventory tracking, bar coding, and MIS-related services. The growing focus on timely transportation and delivery and efficient inventory management will augment the growth prospects for the CEP market over the forecast period”.South African online retail sales, an important source of revenue for the CEP sector, represent only 1% of the country’s overall sales. With household disposable income at the lowest level in a decade, Investec Retail Analyst Kirsty Laschinger does not project any meaningful change for at least two years in the current tough retail environment, the worst since the 2009 recession. With its high unemployment rate, analysts believe that South Africa will be slow to adopt the innovative technology revolutionising all elements of the CEP supply chain, due to the need to maintain a balance between efficient automation, return on investment and job creation. SAEPA’s Garry Marshall, however, believes that the significant growth in the B2C market will increase both volumes and revenue, thereby supporting a positive outlook for the CEP sector.

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa
    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2017

    Full Report

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    R 1 330.00(ZAR) estimated $ 74.73 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2023-03-30

    R 6 500.00(ZAR) estimated $365.20 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2019-10-31

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2015-08-31

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 12
    4.1.2. Regulations 14
    4.1.3. Enterprise Development and Social Economic Development 18
    4.2. Continental 19
    4.3. International 22
    5. INFLUENCING FACTORS 26
    5.1. Economic Environment 26
    5.2. Rising Operating Costs 27
    5.3. Electronic Communications and e-Commerce 28
    5.4. Disruptive Start-ups 29
    5.5. Technology, Research and Development (R&D) and Innovation 30
    5.6. Labour 33
    5.7. Cyclicality 37
    5.8. Environmental Concerns 37
    5.9. Crime and Security 38
    6. COMPETITION 39
    6.1. Barriers to Entry 40
    7. SWOT ANALYSIS 41
    8. OUTLOOK 42
    9. INDUSTRY ASSOCIATIONS 42
    10. REFERENCES 43
    10.1. Publications 43
    10.2. Websites 44
    COMPANY PROFILES 46
    ARAMEX SOUTH AFRICA (PTY) LTD 46
    BIDAIR SERVICES (PTY) LTD 49
    COURIER AND FREIGHT GROUP (PTY) LTD (THE) 52
    COURIER GUY (PTY) LTD (THE) 56
    COURIER-IT S A (PTY) LTD 59
    CROSSROADS DISTRIBUTION (PTY) LTD 62
    DHL INTERNATIONAL (PTY) LTD 66
    DPD LASER EXPRESS LOGISTICS (PTY) LTD 69
    DSV SOUTH AFRICA (PTY) LTD 72
    FEDEX EXPRESS SOUTH AFRICA (PTY) LTD 75
    FREIGHT INNOVATIONS (PTY) LTD 77
    GLOBEFLIGHT WORLDWIDE EXPRESS (SA) (PTY) LTD 79
    INTERNET EXPRESS (PTY) LTD 83
    ISICABUCABU FRANCHISING (PTY) LTD 85
    LASER GROUP (PTY) LTD (THE) 87
    RAM TRANSPORT (SOUTH AFRICA) (PTY) LTD 89
    RTT GROUP (PTY) LTD 92
    SKYNET SOUTH AFRICA (PTY) LTD 94
    TAKEALOT ONLINE (RF) (PTY) LTD 96
    TNT EXPRESS WORLDWIDE (SA) (PTY) LTD 99
    UPS SCS SOUTH AFRICA (PTY) LTD 101
    VALUE LOGISTICS LTD 104
    VIRTUAL LOGISTICS (PTY) LTD 109

    Report Coverage

    The report on the South African Courier Services sector focuses on the current state of the sector, developments within the sector and factors influencing the success of the industry. The report profiles 22 companies including Courier-IT SA (Pty) Ltd which has a fleet of 150 vehicles to service clients such as SABS, Celldirect, Milu Trading and Woolworths, and TNT Express Worldwide (SA) (Pty) Ltd, part of a global network operating in approximately 200 countries.

    Introduction

    This report covers courier and express activities offered by registered unreserved postal operators in terms of the Postal Services Act No. 124 of 1998 (as amended) and excludes all reserved national postal activities carried out by the South African Post Office (SAPO), but includes courier and express activities carried out by its subsidiary companies.Garry Marshall, CEO of the South African Express Parcels Association (SAEPA), explains, “Businesses that rely on the courier and express parcel (CEP) sector for urgent, secure and efficient procurement and distribution solutions are among the key drivers fuelling the CEP industry worldwide and in South Africa, making it the fastest-growing sector of the transport industry. These key drivers include households that are increasingly buying items online and opting for express delivery”. The R8bn CEP service industry in South Africa employs 20,000 people. Although the increase in e-commerce is providing great growth opportunities for the courier sector, the emergence of Uber-like on-demand courier services and alternative delivery options, such as conveniently-located pick-up points, is having a disruptive impact on the traditional CEP industry.

    Strengths

    • Available information technology for all aspects of logistics management.
    • Broad scope of services offered.
    • Broad scope of value-added services offered contributes to supply chain efficiencies.
    • Provides a support service which facilitates the success of other sectors of the economy.

    Weaknesses

    • Critical shortage of professional drivers and other staff.
    • High carbon emissions from vehicles.
    • Industry is negatively affected by local and global economic conditions.
    • Not enough services to rural and outlying areas.
    • There are some inefficient and costly delivery options.

    Opportunities

    • E-commerce will increase the flow of goods requiring delivery.
    • Globalisation will increase access to markets.
    • High growth rate in African countries provides opportunities for growth.
    • Innovation provides opportunities to streamline operations and offer niche services.
    • Potential growth opportunity resulting from Post Office strikes.

    Threats

    • Alternative delivery options such as locked automated drop boxes and conveniently located pick-up points.
    • Competition for traditional operators from Uber-type on-demand courier start-ups.
    • Complex and costly home deliveries associated with e-commerce.
    • Electronic communications reduce demand for delivery of documentation.
    • High operational costs such as increasing fuel costs, proposed carbon tax and user-pays principle for road infrastructure.
    • Negative impact of electricity constraints on logistics and an IT-dependent industry.
    • Poor road conditions and road maintenance backlog causes vehicle damage and delivery delays.

    Outlook

    Constant innovation, collaboration and radical changes to traditional business models are key elements required to overcome challenges and increase the competitive edge in the courier express industry. Tyron Coote of Aramex believes that the future will be client-centred, with the needs and demands of customers completely dominating the service offerings available and changing the face of the B2C courier industry as we know it. He emphasises the need to support and collaborate with potential start-ups and disruptive-thinking individuals to create alternative solutions to the ever-changing logistics industry. Garry Marshall of SAEPA believes that CEP will continue as the fastest growing sector of the logistics industry and will continue to play an important role in the South African economy. Companies are investing in training and education of their employees to usher in smarter and more productive systems. In the short-term, the priorities are customer retention and tight management of pricing, margins, costs, efficiency and economies of scale. “Every item that every South African possesses has been delivered somewhere, sometime. Every item they procure in the future, will have to be delivered by someone. In the UK, organised business describes the CEP sector as indispensable. We are the last mile delivery specialists and we will be around for a long time.”

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa
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    Full Report

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.73 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2023-03-30

    R 6 500.00(ZAR) estimated $365.20 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2019-10-31

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    The Courier, Express and Parcel Services Other than Postal Services in South Africa 2017-05-29

    R 1 900.00(ZAR) estimated $106.75 (USD)*

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 12
    4.1. Local 12
    4.1.1. Corporate Actions 15
    4.1.2. Regulations 16
    4.1.3. Enterprise Development and Social Economic Development 20
    4.2. Continental 22
    4.3. International 24
    5. INFLUENCING FACTORS 28
    5.1. Economic Environment 28
    5.2. Rising Operating Costs 29
    5.3. Labour 30
    5.4. e-Commerce 31
    5.5. Information Technology 33
    5.6. Cyclicality 34
    5.7. Environmental Concerns 35
    5.8. Transport Infrastructure 36
    5.9. Crime and Security 36
    5.10. Electricity Supply Constraints 37
    6. COMPETITION 38
    6.1. Barriers to Entry 38
    6.2. Research and Development (R&D) and Innovation 39
    7. SWOT ANALYSIS 40
    8. OUTLOOK 41
    9. INDUSTRY ASSOCIATIONS 42
    10. REFERENCES 42
    10.1. Publications 42
    10.2. Websites 43
    COMPANY PROFILES 45
    ARAMEX SOUTH AFRICA (PTY) LTD 45
    COURIER AND FREIGHT GROUP (PTY) LTD (THE) 48
    COURIER GUY (PTY) LTD (THE) 51
    COURIER-IT SA (PTY) LTD 53
    CROSSROADS DISTRIBUTION (PTY) LTD 55
    DHL INTERNATIONAL (PTY) LTD 58
    EWC EXPRESS SA (PTY) LTD 61
    EXPRESS AIR SERVICES (PTY) LTD 64
    FEDEX EXPRESS SOUTH AFRICA (PTY) LTD 66
    FREIGHT INNOVATIONS (PTY) LTD 68
    GLOBEFLIGHT WORLDWIDE EXPRESS (SA) (PTY) LTD 70
    INTERNET EXPRESS (PTY) LTD 73
    ISICABUCABU FRANCHISING (PTY) LTD 74
    LASER GROUP (PTY) LTD (THE) 75
    ONELOGIX GROUP LTD 77
    RAM TRANSPORT (SOUTH AFRICA) (PTY) LTD 80
    RTT GROUP (PTY) LTD 83
    SKYNET SOUTH AFRICA (PTY) LTD 85
    TNT EXPRESS WORLDWIDE (SA) (PTY) LTD 87
    UPS SCS SOUTH AFRICA (PTY) LTD 89
    UTI SOUTH AFRICA (PTY) LTD 92

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